Taking care of someone can be difficult and not having enough money to be able to sufficiently take care of the person or child can add to the stress of it all. The child and dependent care tax credit can make it a little easier for parents to keep working without putting too much stress on their budget.

This course will focus on the child and dependent care credit that helps taxpayers by refunding a portion of their dependent care expenses incurred while either working or looking for work. It reviews the rules that define the individuals for whom dependent care expenses may be claimed and the types of expenses that are eligible. Employer-sponsored dependent care benefits plans are discussed, together with the method for claiming the credit. The relevant governing regulations are referenced, along with a discussion of several tax court cases in which the child and dependent care credit played a role.

Upon completion, students will be able to:

• given the relevant background information about an individual, correctly apply the qualifying person tests to determine whether that individual can be regarded as a dependent for a taxpayer who wishes to claim the child and dependent care credit
  
• correctly apply the general rules relating to the definition of earned income for purposes of the child and dependent care credit
  
• correctly identify the conditions under which a claim for the child and dependent care credit may be acceptable for taxpayers who are not legally married or who are considered unmarried for tax purposes
  
• correctly identify and calculate the impact on the child and dependent care credit of dependent care benefits and other payment assistance that a taxpayer may receive to offset the cost of obtaining care for their dependents

Tax Year: 2022

CPAs, EAs, and other tax professionals