Child Care Tax Credit 2010?

I have two kids, they're are 15 and 13 as of the end of the tax year. Is it true that I can get a $1,000 tax credit per child on my tax return?
Was talking about this with a friend and she said because the Child Care Tax is a credit, not a deduction, you get to take those dollars right off your tax bill. Is this correct?
What else should I know about the child care tax credit 2010?

asked by Ralph in Personal Finance | 2905 views | 01-25-2010 at 08:25 PM

That is correct. That's how it works in 2010 and how it worked before too.
The child care tax credit does not affect the exemptions you take for dependents. The credit is in addition to your exemptions.
In order to claim the child care tax credit you must meet these tests to qualify for the credit:

* The dependent must be a United States citizen or resident, and a blood or adoptive son, daughter, stepchild, or grandchild.
* You must report each qualifying child's tax identification number (TIN) (this is usually the child's Social Security number) on your return for the year that you take the credit, in this case 2010.

answered by Beckett | 01-25-2010 at 08:38 PM

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