Federal Tax Credits
Child and Dependent Care Tax Credits helps families pay for child care for children under the age of 13 if the parents are working or looking for work. Parents who are full-time students also can claim the credit. Qualifying care includes Child Care Centers, Family Child Care Homes and child care provided by paid friends or relatives (who are not a dependent of the taxpayer). The size of the credit depends on the number of children in child care, total family income and the amount paid for child care during the tax year. There are limits on the credit given for one child and two or more children. To claim the credit, you must file either Form 1040A or Form 1040 federal tax return and attach a separate form for the credit. If you file Form 1040A, use Schedule 2 for the credit. If you file Form 1040, attach Form 2441.
Usted ha trabajado duro, obtenga el crédito que merece! Familias en Nueva York: Usted podría recibir miles de dólares en desgravaciones fiscals.
Earned Income Tax Credit
Earned Income Tax Credit (EITC) is a refundable tax credit for low- and moderate-income families, particularly those with children. The EITC is based on family income and the number of children in the family. Both single- and two-parent families are entitled to the credit as long as one parent is employed.
Si usted trabaha y tiene hijos, podría recibir miles de dólares para su familia cuando entregue su declaración fiscal!
State Tax Credits
New York State and 23 other states have state tax programs related to the Child and Dependent Care Credit. Check with your state Department of Revenue for more information about State Tax Credits.
In-Home Child Care Employment/Nanny Tax
You become an employer under federal law when you hire an in-home caregiver. You need to be aware of the laws regarding taxes, verification of employment eligibility and minimum wage in New York State. Contact the Department of Labor, the Internal Revenue Service, an accountant, a tax adviser or an insurance agent for information on these topics. You also should check with your insurance agent to see if your homeowners' policy covers workers' compensation insurance for your in-home caregiver. You should notify your car insurance company if your caregiver will be driving your car and if there are additional fees for adding the nanny on your insurance policy.