Dependent Credits
There are several tax credits available to families with
dependent children. These credits are intended to reduce tax
liability for families who have expenses for caring for dependent
children.
Child and Dependent Care
The Child and Dependent Care
Credit is available to families who pay childcare expenses. The
expenses must have been incurred so that you and your spouse can
work or look for work. The credit is based on a percentage of the
expenses you pay.
Child Tax Credit
The Child
Tax Credit is available to families that have a qualifying
child under the age 17. The credit is non-refundable, which means
you must have tax liability to claim the credit.
Additional Child Tax Credit
The Additional Child Tax Credit
is available to families who have a qualifying child under the age
17 and who did not receive the full amount of the Child Tax Credit
because they did not have any tax liability. This credit is
refundable, which means you do not have to have any tax liability
to claim the credit.
Education Credits
Education
tax credits are available to individuals and families who have
out-of-pocket post-secondary tuition expenses. The American
Opportunity Credit is available to students completing their first
four years of post-secondary school. The Lifetime Learning Credit
is available to students in any phase of post-secondary
education.
Adoption Credit
The Adoption Credit is
available to families who have out-of-pocket adoption expenses. You
can use the credit to exclude any employer-provided adoption
benefits from your income or to offset adoption expenses you have
paid.