FTAX Blog Do you have a child, and what to apply for itin number? Taking care of them does incur huge expenses, does it not? This is more commonly noted in households where the income is not enough or the child is being raised by a single parent. As far as taxes are concerned, your situation can provide you with some benefits. The IRS offers the Child and Dependent Care Credit for all these people. You can also claim this credit, but before you do so, there are some things which you should know.

How can you qualify

If you want to apply for itin number it is important that you know that the child and dependent care credit is offered to only those agents who are either working or searching for a job. If you and your spouse are filing jointly, your income must be generated from your salary, wages or some other compensation.

The care which you avail for your child must be during office hours. Babysitting at off hours might make you ineligible for this credit. Other than this, the age of your child must be less than 12 years.   If the child is older than this, but cannot take care of himself due to some reason, you may be considered as an exception. If you and your partner have divorced, then only the custodial parent is eligible for taking this credit.

There are some other technical rules as well. Ask an accountant for more details about these.

The credit amount

There are two main factors which decide the credit amount when you apply for itin number. The first of these is the number of qualifying children which you have and the second is your adjusted gross income or AGI. If you only have one qualifying child, your credit is limited to $3,000. For two children, this rises to $6,000.

If your income is less than $15,000, your credit is equal to 35% of your childcare expenses. For incomes higher than this, the offered credit is deceased by 1% on every rise of $2,000.

Documents you will require

You can claim the Child and Dependant Care Credit if you fill up the 2441 form and file it with your taxes. This form is given on the IRS website. For filing it up, you will need your name, social security number and address. If you are not eligible for social security, then you will have to apply for ITIN Number. This can be done through the W-7 form. If you have any confusion about how to apply for ITIN Number, ask a reputed accountant in your area and they will guide you.

The IRS requires all this information so that they can match your claim with their records and ensure that the organization to which your child care money is going is paying taxes on these.

One more thing to need: if a tax exempt organization offers care to your child, you will have to tick off the relevant box on the 2441 form.

So avail the Child Care credit and lower your tax bill this year.

If you need more information about our accounting and tax services, please contact us at 407-502-2400. Freedomtax Accounting’s staff has been providing honest accounting services and tax services for 15 years. Our Orlando accounting and tax firm has its main offices in Kissimmee, FL. Our services are provided nationwide, but mainly in the Central Florida market to areas like Orlando, South Orlando, Kissimmee, St. Cloud, Poinciana, Clermont, Davenport, Hunters Creek, Lake Nona, Celebration, Winter Park, Windermere, Dr. Phillips, Maitland, Altamonte Springs, Winter Garden, Ocoee, Apopka, Belle Isle, Edgewood, and Oakland FL. Our tax accountants and IRS enrolled agents (irs ea) specialize in corporate accounting and bookkeeping, tax services, tax preparation, back taxes help, tax debt relief, tax resolution, tax planning, itin numbers, incorporations, and non profit 501c3 tax exempt.


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