Child and Dependent Care Credit

In addition, the Child and Dependent Care Tax Credit can help your students keep even more of the money they earn. Here’s how it works.

If your students paid someone to care for a child or a dependent so they could work, they may be able to reduce their federal income tax by claiming the credit for child and dependent care expenses. This credit is available to people who, in order to work or to look for work, have to pay for child care services for dependents under age 13. The credit is also available if a person paid for the care of a spouse or a dependent of any age who is physically or mentally incapable of self-care.

For more information, visit the IRS Web site and then search for “Child and Dependent Care Credit.”