Adult day-care programs and similar programs are qualifying expenses. The purpose of DCAP is to help parents more easily manage child care expenses incurred because of employment. The taxpayer’s child and dependent care expenses must be for the care of one or more qualifying people. Dependent Care Credit: A nonrefundable tax credit offered to taxpayers who pay out-of-pocket expenses for child care. Information on how to claim the Child and Dependent Care Credit can be found on page 34 of the NJ-1040 Instructions . If Dependent Care Benefits are listed in Box 10 of a Form W-2, Wage and Tax Statement, then the taxpayer MUST complete Form 2441, Child and Dependent Care Expenses. What is a Child Care Tax Credit? The maximum expense that can be used to calculate the child and dependent care credit is $3,000 for one child or $6,000 for two or more children, reduced by any excluded dependent care benefit (DCB) received. However, it’s important to note: A tax credit is different from a tax deduction. If your clients child turned 13 during the year, enter only the qualified expenses prior to the child's 13th birthday. The dependent care credit is … Any of the following are qualifying persons: Various Eligible Expenses. You calculate the credit by taking a percentage of the expenses you paid to a care provider. What is the Child & Dependent Care Credit? Costs at the kindergarten level, such as nursery school, can qualify. This tax credit can be applied for up to 35% of qualifying expenses depending on your income. A qualifying individual can be a child under age 13 or a spouse or dependent who lived with the taxpayer for more than half the year and is physically or mentally incapable of self-care. The tax help states to enter the qualified dependent care expenses for each qualifying person. The Child and Dependent Care Credit helps working families pay expenses for the care of their children, adult dependents, or an incapacitated spouse. How do I claim the Child and Dependent Care Credit? First, fill out the Dependent screen for the child or other dependent, including the amount of child or dependent expenses you paid for the year. You can use your Dependent Care FSA (DCFSA) to pay for a wide variety of child and adult care services. Refer to the Volunteer Resource Guide, Tab G, Nonrefundable Credits, Child and Dependent Care Credit Expenses, to determine who is a qualifying person. Claiming the Child and Dependent Care Credit is a two-part process. The child and dependent care credit allows you to recoup a portion of child care expenses while you worked or searched for work. If Form 2441 isn’t completed, the Box 10 amount is added as taxable wages. Sometimes before and after-school programs qualify, but it must be for the care of the child, rather than just leisure. 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