3. Child and Dependent Care Costs
Are you paying for the care of your child or other dependent so you and your beloved spouse could work? Well, we have some good news: you may be entitled to ask for the child and dependent care credit.
This type of credit is basically a non-refundable tax credit offered by the IRS to those who are actually paying out of their pocket childcare-related expenses.
As a general rule, a tax credit is better than most tax deductions because the latter just minimize your taxable income, whereas a tax credit reduces your tax liability. Find out if you are entitled to get the child and dependent care credit, accessing the IRS website.
