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Parents  >  Checklists  >  Tax Fact Sheet

Tax Fact Sheet

 

2015  Tax Fact Sheet   

The Child Care Council of Suffolk, Inc. is taking part in a drive to tell families with children in child care about ways to lower their taxes or get more money back. Families can list child care costs on their tax returns. There are child care benefits, tax credits, and money to be had for full or part-time working parents. More information and a brief description of these options are below. For further information you can go to www.irs.gov  or call 1.800.TAX.1040. 

For All Families  

Child Tax Credit The maximum amount you can claim for the credit is $1,000 for each qualifying child. The child must be under the age of 17 and listed on your tax return. The credit is allowed if your adjusted gross income (AGI) is below $75,000 (Single, Head of Household or Qualifying Widow(er), $110,000 (Married filing jointly), or $55,000 (Married filing separately). 

For additional information: http://www.irs.gov/pub/irs-pdf/p972.pdf Refer to Publication 972-Child Tax   

 

Child and Dependent Care Credit If you paid for the care of a qualifying child under the age of 13 when the care was provided so that you and your spouse (if married) could work or look for work, you may be able to claim the child & dependent care credit. The credit is generally a percentage of the amount of work-related child & dependent care expenses you paid to a care provider. The percentage depends on your adjusted gross income. 

The expenses qualifying for the credit must be reduced by the amount of any dependent care benefits provided by your employer that you excluded from gross income. The total expenses qualifying for the credit are capped at $3,000 for 1 qualifying individual or at $6,000 if you had 2 or more qualifying individuals.  

For additional information: http://www.irs.gov/publications/p503/ar02.html#en_US_publink1000203291 Refer to publication 503-Child & Dependent Care Expenses for additional information  

  

Dependent Care Assistance Plans (DCAP) & Flexible Spending Accounts (FSA) - This exclusion 

applies to household and dependent care services paid directly or indirectly by your employer. These are benefits that may be given only by your employer. Employers may give tax-free money to workers or they may let workers set aside part of their salaries for dependent care expenses. This amount is not taxed by Social Security. For DCAP, the most that can be deducted each year is $5,000. The most that can be deducted if married and filing separately is $2,500. The limit on the amount that can be contributed to an FSA is set by the employer’s plan. Generally, contributed amounts that are not spent by the end of the plan year are forfeited, so it is important to base your contribution on an estimate of your qualifying expenses.  

In order to use the Child and Dependent Care Tax Credit and/or Dependent Care Assistance Plan, you must put the Social Security number, or Employer ID number, of the child care provider on your tax return.  For additional information: http://www.probenefits.com/participants/dependent-care-fsa.html

  

For Low and Moderate Income Families  

Earned Income Credit - The Earned Income Credit is a special tax benefit for working people who work full or part-time. You must be at least age 25 but under age 65. For the 2012 tax year, the maximum credit was $6,044. Even if income taxes are not owed, the credit is still available by filing a federal tax return, Form 1040 or 1040A, and attaching Schedule EIC. To qualify for the credit your earned income (and adjusted gross income) must be less then:   • $46,997 ($52,427 married filing jointly) with three or more qualifying children  

       $43,756 ($49,186 married filing jointly) with two qualifying children  

       $38,511 ($43,941 married filing jointly) with one qualifying child    $14,590 ($20,020 married filing jointly) with no qualifying children  

       In addition, your investment income cannot exceed $3,200. 

       N.Y.S. Earned Income Credit is based on your Federal Earned Income Credit. Use form IT 215 to compute the amount.  

You cannot receive this credit if you file as married, filing separately.  

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Some workers take part in a flexible spending account or another job benefit plan. They may set aside part of their salaries for dependent care and/or health related expenses. This amount is taken out of their salary before taxes. This part of their income will not be counted for figuring out the amount of the credit. A family’s Earned Income Credit does not count as income in figuring out benefits for AFDC, Medicaid, SSI, food stamps, or subsidized housing. Foster parents may also be able to use this credit.  

If you have not taken advantage of this credit in the past, you can file for it for up to the past three years. Your employer can also add the Earned Income Credit to your pay in each paycheck of the next year. In order to do this, complete Form W-5 and give the form to your employer.  

For additional information: http://www.irs.gov/publications/p596/ar01.html#en_US_2012_publink1000167170 Refer to Publication 596 – Earned Income Credit for additional information  

  

New York's 529 College Savings Program Direct Plan - New York State taxpayers, who are account owners, can deduct up to $10,000 annually if married filing jointly and $5,000 annually for single residents.   For additional information: https://uii.nysaves.s.upromise.com/content/programfeatures.html   

 

The American Opportunity Tax Credit (AOC) - may be used to help you offset the cost of higher education by reducing the amount of your income tax. The maximum credit is $2,500 per eligible student and the full credit is available to individuals, whose modified adjusted gross income is $80,000 or less, or $160,000 or less for married couples filing a joint return. The credit is phased out for taxpayers with incomes above these levels.  

For additional information: http://www.irs.gov/Individuals/AOTC Refer to Publication 970 – Tax Benefits for Education for additional information  

  

The New York State Household Credit - You are entitled to this non-refundable credit if you cannot be claimed as a dependent on another individual’s income tax return and: 

       You are single with a federal adjusted gross income of $28,000 or less. Credit amount is up to $75  

       You are married, head of household or a qualifying widow(er) with federal adjusted gross income of $32,000 or less. Credit amount is $20 to $90, plus $5 to $15 more per additional exemption claimed on your federal return  

       If married and filing separately, see instructions on your income tax form 

For additional information: http://www.tax.ny.gov/pit/credits/household_credit.htm

  Suffolk County Subsidized Child Care – Effective April 1, 2013 Suffolk County Department of Social Services is taking applications to help working parents pay all or part of their child care costs.  

       Look at the row that matches your family size on the chart below. If your income is below that amount you should call the Department of Social Services @ 631.853.3666 for an application. You can also call the Child Care Council of Suffolk @ 631.462.0303 for further information.  

       Child support must be included when figuring out your income. 

 

  

Family

Size

Child Care Block  Grant Standard   

(150% of Poverty Level)

2  

$26,285  

3  

$33,149  

4  

$40,013

5  

$46,877  

6  

$53,741  

7  

$60,605

8  

$67,469

 

  Our Resource & Referral Service will assist you through the process   Please contact your tax advisor before making any tax related decision.  

  

 

Families with children in child care can lower their taxes or get more money back