The Federal Tax Credits Blog

Posts Tagged ‘dependent’

Question: I have a child who I would like to claim on my taxes. How much credit will I get for him in 2010? Is there?

a website to show me this? I know in 2009, it was $3650.

Also, my wife doesn’t work. She only takes care of the baby. Can I claim her as a dependent?

Answer: The answer to some of your questions depends on income levels.

With respect to your child, you can claim the baby as a dependent. For 2010, the amount is $3650. In addition there is a child tax credit, which could be worth as much as $1000.

You cannot claim your wife as a dependent. However, you get to file a joint return, which is far better than filing single, since your spouse doesn’t work. (Of course, you don’t have the option to file single, since you are married.)

7 Tax Tips for Your 2010 Return (The Tax Guy)

These breaks could boost your refund — or reduce what you owe.

Obamacare Court Ruling Headlines

Question: When u add a qualifying relative to your tax return, how come u cant get child tax credit.?

How come u cant get dependent care credit and earned income credit. Also will if affect what i can get for my qualifying child also???

Answer: In 2005, congress made the “qualifying child” a prerequisite for the child tax credit, dependent care credit and EIC. The rule was to simplify the claiming of these credits, but clearly if you can claim a dependent only as a qualifying relative, it isn’t so simple.

Tax tip: Advice for wary spouses – consider filing a separate return

What if your spouse ran a Ponzi scheme, reaping millions or billions, and you didn’t know it?

Health Reform: What Employers Should Know for Now and for the Future – Part 8

Question: Tax credit on child care?

If I pay my friend that is a stay at home mom to watch my little girl. I pay her 28 dollars a day, can I still use that as a tax credit if she doesnt have a FEIN number? Do I need her to get one?

Answer: Yes, she can give you her ss# to put on your return for who you paid.

She is required to claim this as income, whether you claim the child care credit or not.

Mitchell Bard: The Tea Party All-Stars: The Worst of Extreme GOP Midterm Candidates

Noted football coach Bill Parcells once said, “You are what your record says you are.” Parcells’ quote jumped into my mind when I was thinking…

WBAL Radio Interview on Child Care Tax Credit 4 5 07

Question: Daycare deduct as business expense?

If one is self-employed and files a schedule C, can she deduct daycare/babysitting expenses to go to work 100% as a business expense? This would be instead of taking the day care tax credit. Also, then would she need to 1099 her daycare provider/babysitter in order to claim the business deduction?

Answer: While you won’t 1099 the provider, you will be giving them a W-10 to get their SSN so you can put it on form 2441. (UNLESS she does the work at your house, in which case YOU owe her a W-2 and need to file a schedule H to pay the payroll taxes.)

The IRS can then cross check to see that she reported the income on her tax return.

Summertime child care expenses may qualify for a tax credit

Did you know that your summer day care expenses may qualify for an income tax credit? Many parents who work or are looking for work must arrange for care of their children under 13 years of age during the school vacation. Those expenses may help you get a credit on next yearâs tax return.

Child Care Tax Credit