Truth 20. Tax help in caring for your kids (and others)
The costs of raising a child are innumerable, but the tax code offers some help for working parents.
When you file your annual return, you might be able to claim the Child and Dependent Care Credit to help offset some daycare costs.
Child care assistance from your employer, typically as a benefit that is excluded from your income, also provides tax savings.
Child care credit—The child care tax credit is designed for working taxpayers, so if you paid someone to look after your child while you were on the job, you’ve met the credit’s first requirement.
If you’re married, both you and your spouse must work. The dual-employment requirement is waived if the nonworking spouse was a full-time ...