Child Care Credit

[Ruby]

Correct me if I am wrong, If a tax payer registers with thier employer for the pretax deduction for child care in the amount of $4000 and thier actual child care expenses are $8000, the tax payer can NOT claim the rest for the child care tax credit?Seems like they should be able to but that would effectivally bypass the limitation of 4800. Thanks for any information you can give me.

[Lion]

Credit

Isn't the credit now $3,000 per child up to two, so if she had $5,000 pretax with her employer but spent $8,000 ON TWO OR MORE CHILDREN, she'd still have another $1,000 to use toward the credit?

[outwest]

That's why you need to fill in the Dep Care..

Correct me if I am wrong, If a tax payer registers with thier employer for the pretax deduction for child care in the amount of $4000 and thier actual child care expenses are $8000, the tax payer can NOT claim the rest for the child care tax credit?Seems like they should be able to but that would effectivally bypass the limitation of 4800. Thanks for any information you can give me.

benefits box on the Form 2441. Unused dependent care benefits become taxable and it coordinates the limitations between the employer plan and the child tax credit.

Doug

[S T]

Limits 2006

$3,000 for one child - $6,000 for two or more children. Maximum dependent care reimbursement is $5,000.

So how many children does your t/p have for the $8000 expense?

If two, agree with Lion t/p could have another $1,000 to claim on return.

Sandy

[Black Bart]

Send 'em to gram-maw's house

Whatcha doin' up so late/early?