Local accountant breaks down the child and dependent care credit option
DELMARVA – Mark Welsh, a local accountant, and partner with UHY LLP are giving viewers some tax tips amid the tax season, and also clarifying a different option for filing your taxes this year; the child and dependent care credit option.
According to Welsh, tax-payers who are paying for child care or paying for someone to care for a member of their household while working could qualify for this credit. The maximum eligible expense for this credit is $8,000 for one dependent and $16,000 for two or more.
Welsh says this is different from the advanced child tax credit, which some taxpayers aren’t always aware of. “Everybody seems to be aware of the child tax credit, the advanced child tax credit, everybody seems to be aware of it, I’m not hearing a lot of talk about this,” says Welsh. “This potentially could be higher, the credit could be more than the child tax credit so I think people need to be aware of it.”
Welsh says this year is the first time it will be a refundable tax credit.
Click here for more information on the child and dependent care credit.