what percent do you receive back at tax time for paying for child care services.?

is childcare a tax deduction? I live in Maryland and I was told that it was.

Public Comments

1. It can vary but most people get a credit of 20% of the first $3000 each for up to 2 children but the credit can be as high as 30%

   Example:

   1 Child - Paid $2000 - Credit = $400-$600

   1 Child - Paid $3000 - Credit = $600-$900

   1 Child - Paid $7000 - Credit = $600-$900

   2 or more Children - Paid $4000 - Credit = $800-$1200

   2 or more Children - Paid $6000 - Credit = $1200-$1800

   2 or more Children - Paid $14000 - Credit = $1200--$1800

   It is not much but it is better than nothing.

   This also assumes that you have a tax liability. If your income is too low and/or your tax liability is wiped out my other credits, you may get $0.00.



2. Regardless of what state you live in, you receive a credit on your taxes. That means your tax liability is decreased by amount for which you are eligible. It is a teared system according to your income. The maximum you can use to calculate the credit is $3,000 for one child or $6,000 for two or more. You can get a credit anywhere from 20%-35% of the expenses paid by yourself for the tax year in question.

   The amount of credit depends on your income, you cannot make a blanket statement as to how much you will receive according to how many kids you have. It is income dependent.

   Here is the link:

   http://www.irs.gov/pub/irs-pdf/p503.pdf

   This is a great credit for people who have to pay for daycare and need a little break.