Year-End Statements become available at the end of January of the following year. (Ex. – Year end 2010 statements were available January 21st, 2011.)
If your family currently attends a Small Miracles school or if you have withdrawn from a Small Miracles school, please see the Center Director to obtain your Year-End Statement.
Child Care Tax Credit*
What expenses qualify for the child-care tax credit, and who qualifies?
You can claim this credit if you spend money for the care of children younger than 13 so that you can work or look for work. You must have earned income (that’s earnings from a job, not investments) to qualify for the credit, and if you’re married, both you and your spouse must have a job or be a full-time student.
The cost of day care, preschool, before- and after-school care, day camp, or a nanny or other babysitter can count toward the credit.
How much is the credit worth?
That depends on the number of children, the cost of care, and your income. You can count up to $3,000 in child-care expenses for one child, or up to $6,000 for two or more children. The credit is a percentage of the amount spent on child care, and that percentage gradually decreases as income increases. Families that earn less than $15,000 can claim a credit for 35% of qualifying expenses; families that earn more than $43,000 get the smallest credit: 20% on eligible costs.
Is there a maximum income limit?
No. Regardless of your income, you can benefit from the credit. Keep in mind that this is a credit, not a deduction, so it lowers your tax bill dollar for dollar.
Does the cost of kindergarten count toward the credit?
No. The cost of kindergarten and higher grades is considered to be an educational expense, not a child-care expense, so it doesn’t qualify for the child-care credit. However, any before- or after-school care — whether it’s through the school, another organization or a nanny or babysitter — can count toward the credit until the child turns 13.
If your child has not yet reached kindergarten, the cost of his or her program can count toward the credit — whether it’s called preschool, pre-kindergarten, nursery school or day care.
Detailed information on federal tax credits for parents is available from:
The Internal Revenue Service
Call (800) TAX-1040 or (800) 829-1040
Tax Information for Parents
Child and Dependent Care Tax Credit
Child Tax Credit
Earned Income Tax Credit
The National Women’s Law Center
State Tax Credit Information (From the National Women’s Law Center)
* Credit amounts may change from year-to-year, are usually dependent on total family income and size, and may be subject to maximum income or child care spending limitations. Consult your tax advisor, the IRS, and state revenue officials to confirm your eligibility.