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Severn, MD: Dependent Care Tax Credits
More good news due to increased income limits in the new tax laws. If you have a child who was under the age of 13 throughout 2018 or who was under the age of 17 and requires assistance for self-care, you might now be eligible to claim both the Child Tax Credit and the Child and Dependent Care Credit.
 
To qualify for the Child Tax Credit (also known as the “per-child credit”), you must have a child who was less than 17 years old throughout 2018, can be claimed as a dependent on your tax forms, and lived with you for at least six months of the year. The income limit at which a phase out of the credit begins was nearly quadrupled under the Tax Cuts and Jobs Act of 2017, to $200,000 ($400,000 for married filing jointly). The credit itself doubled from $1,000 to $2,000 per child.
 
The Dependent Care Tax Credit is a dollar-for-dollar tax credit for expenses such as day care or home assistance needed for a dependent child under age 13 or incapable of self-care, with a maximum credit of $3,000 for one child.
 
 
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