Tax Paperwork To Give Families

[Holiday Park]

Thanks . I didnt get into MMK because when I tried it out a couple yrs ago I didnt like it and Im not licensed. I only have 2 Ft , 1 very PT. I can look into it again . But It just seems like more work to enter that stuff into a PC program every day/week when I can just have pre_printed forms to fill out , in a binder, then add everything up at the end. But Ive never used mmk so maybe its easier and i dont know it. I always thought it was mainy for the food program. Rfht bow I dont serve the meals but when I do it will be a rotating menu and I will still not be on the food program since I have to be licensed for that.

[Abigail]

Parents can only count up to $3,000 of child care expenses for one child ($6,000 for 2 or more) towards their child care tax credit because that's all that Congress will allow. Congress extended this law as part of the fiscal cliff negotiations. This means that the amounts parents above above these numbers does not get them a higher credit. The credit is based on what they paid, not when their child was born. There is another tax credit called the Child Tax Credit that does give parents a credit based on how many children they have, not how much they paid for child care. So, the new born is eligible for the Child Tax Credit, but not the Child Care Tax Credit. To claim either credit, the parents must fill out tax forms when filing their tax return.

Here's an article that explains all the tax credits for parents: http://www.tomcopelandblog.com/2011/...x-credits.html

So my family who has a child that has been here all year has paid over $6,000, BUT the second child who just started a few weeks ago has not paid up to $3,000 for the child yet since it was so late into the year. You're saying they can still claim $6,000 even though the majority of their childcare bills were from the one child and not the newborn?

[TomCopeland]

child care tax credit

So my family who has a child that has been here all year has paid over $6,000, BUT the second child who just started a few weeks ago has not paid up to $3,000 for the child yet since it was so late into the year. You're saying they can still claim $6,000 even though the majority of their childcare bills were from the one child and not the newborn?

Yes. They are claiming $6,000 towards their child care tax credit. They don't get a $6,000 tax credit. The maximum credit they can get is $2,100 ($6,000 x the maximum of 35% depending on their income).

[Chatter Box]

Do you put the child's name or the parent's name?

I have a child who's parents were never married and they do not live together either. The child has the father's name but they both pay. I'm not sure how to reference the family.

[TomCopeland]

child care tax credit

Do you put the child's name or the parent's name?

I have a child who's parents were never married and they do not live together either. The child has the father's name but they both pay. I'm not sure how to reference the family.

Give a receipt to the parent who paid you. If you know how much each parent paid you, give a separate receipt to each parent indicating what they each paid. If you don't know this, give each parent the same receipt for the total amount you paid and mark one of the receipt as "Duplicate". Put the child's name on the receipt.

Join me for a webinar “2012 Tax Changes: How to Avoid Mistakes on Your Tax Return” Tuesday, February 12th at 8:30-10:00pm Eastern Time. The cost is $25 (100% tax deductible!). To register: http://events.r20.constantcontact.co...&llr=yatrx4cab