Strollerderby

"If he hasn't, why did you need a babysitter?" - Maybe if you had your kid July 1, 2008?

I thought that if your kid was born anytime in the tax year it counts as the full year. At least that is how it works with claiming a newborn as a deduction. As long as baby makes his way out by Dec. 31, he is a full year deduction. I am assuming that would also apply to this credit.

Yes, I took it and it helped tremendously. Now I am thankful that my mom charges us to watch our kids. It is a win-win situation.

The maximum you can take into account is $3000 or $6000, yes, but the credit itself is only 20% of what you paid.  A birth, sometime in the tax year, is treated as a full year, but at the age limit, the amount you can take into account is the amount paid up to the 14th birthday.

 Also, if the taxpayer works but the spouse does not, there are restrictions on the use of this credit.  It can also be applied if one spouse works and the child care is so that the other spouse can take qualifying education classes.

 It might be worthwhile to point out that this credit is called the Child and Dependent Care credit, and it does apply in such circumstances as when a spouse is disabled, as an example, and that spouse requires full time supervision.  If your parent is a qualifying dependent, perhaps with alzheimers, and you pay for daytime care so that you can work, those costs can get you the credit.

 Sorry I got carried away.

I think Twyla's right. My kids were born in November, and we got a full year deduction. It kind of rocked.

Does anyone know if preschool counts? My husband will be doing freelance work at home while our daughter goes to preschool.

The bit about writing off a percentage of what you paid up to $6,000 for two or more kids is pretty important. If it's one kid, you get $3,000.

Here's how it works in real life. I have one kid. I paid $13K in childcare last year. I make little enough to take the full credit, so I got 20% of $3K. I paid $13K and I got a $300 credit.

Doesn't sound so great anymore, does it? That barely covers one week of daycare for me.

Regarding the question, does preschool count?

Pretty sure it does, if you can say that you send the kid to preschool so you can work. Or at least tell the IRS that. :)

With the cost of full time childcare in the Chicago area, I'm going to have to send my newborn to work to pay for her own care, regardless of the Childcare Credit.  Or something like that.