Tweet
I'm trying to figure how the state of Oregon determines how much a working family will get credited at the end of the year? The family will only pay out approx $1040 for the entire year.
-
-
I'm sorry, I forgot to include that they will only be paying a total of $1040 to their Childcare provider for the entire year. -
It depends on several factors including their gross income.Comment
-
What is the goal?
Is the provider trying to decide whether or not to report earned income?- Unless otherwise stated, all my posts are personal opinion and worth what you paid for them.
Comment
-
Tax credit
The federal child care tax credit is based on how much the parent paid for child care and their family's income. At the lowest income level (adjusted gross income of less than $15,000) the credit is 35% of their child care costs (up to $3,000 for one child and $6,000 for more than one child). So, the parent would get a maximum credit of $364. No matter how high the adjusted gross income is, the credit will never be lower than 20%.
There is also the child tax credit which is not based on how much a parent pays for child care. Instead, parents are eligible for this $1,000 credit based on their income. If they earn less than $110,000 married filing jointly, $75,000 single or $55,000 married filing separately. If you earn more than these amounts the credit is reduced by $50 for each $1000 you earn above these limits.Comment
Comment