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Child care is expensive. Here are some options available to be able to reduce your child care costs or get some help paying your child care bills.
- Child and Dependent Care Credit
The Child and Dependent Care Tax Credit is designed to offset some of the child and dependent care costs that families pay in order to work. This credit is worth up to $2,100. The state Child and Dependent Care Tax Credit can help eligible families offset their child care expenses. These tax provisions can lower the income taxes that families must pay and, in some cases, give cash refunds to families whose incomes are too low to owe taxes.
- Child Tax Credit
This credit is for people who have a qualifying child. It can be claimed in addition to the Credit for Child and Dependent Care expenses. The Child Tax Credit is designed to help families offset some of the costs of raising children.This credit is worth up to $1,000 per child. Even families who owe little or no income tax can receive at least some of this credit as a refund if they have at least $3,000 in earnings in 2009.
- State child care subsidies
Low- and moderate-income working parents can receive state subsidies for child care, including preschool instruction, after-school programs for children up to age 13, and care for children and teens with special needs.
Subsidized care may be provided under contracts between the state and licensed child care centers or through voucher certificates, which allow parents to choose a child care program. The vouchers can be used for a variety of child care, such as licensed centers and registered family day care homes, which are allowed to care for five children at a time.
- Employer /College support
- Head start and Early-head start
Head Start programs
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- Federal earned income tax credit
Up to $5,657 from the federal Earned Income Tax Credit.
- Federal child tax credit
Up to $1,000 per child from the federal Child Tax Credit.
- Federal child and dependent care tax credit
The federal Child and Dependent Care Tax Credit can help eligible families offset their child care expenses. These tax provisions can lower the income taxes thatfamilies must pay and, in some cases, give cash refunds to families whose incomes are too low to owe taxes. Up to $2,100 from the federal Child and Dependent Care Tax Credit.
- Making Work Pay Credit
Up to $800 from the new Making Work Pay Credit, if you
haven’t already received it in your take-home pay.More families than ever are eligible for these credits this year.
To get these credits, you must file a tax return.
Find out where you can get FREE help with your taxes by calling the IRS toll-free
at (800) TAX-1040 or (800) 829-1040. Or go to www.irs.gov/individuals/topic.
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