Business Tax Recovery Logo


Tax Deduction Consulting: Dependent Care Burlington IA

There is a tax credit associated with the cost of dependent care. The rules and regulations for taking this credit, as would be expected, are very complex. The credit is limited to 35% of actual expenses. Since it is a credit, however, that comes directly off your taxes owed; it is an important fact in your individual tax obligation. In some cases, this credit will be reduced if you receive dependent care benefits.

Mr. Kenneth E. Lawson (RFC®), CHFC, CLU, LUTCF
(563) 359-1688
2435 Kimberly Rd Ste 300S
Bettendorf, IA
Company
Client 1st Wealth Management, Inc.
Qualifications
Years of Experience: 44
Membership
IARFC, SFSP
Services
Invoice, Estate Planning, Business Planning, Portfolio Management, Pension Planning, Retirement Planning, Medicaid Planning, Tax Planning, Employee Benefits, Stocks and Bonds, Mutual Funds, CD Banking, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Medical Insurance, Charitable Planning, Education Plan, Healthcare Accounts, Asset Protection, BuySell, Compensation Plans

Data Provided by:
Dirk M. Dixon (RFC®), EA
(515) 285-5546
8033 University Blvd
Clive, IA
Company
Baker & Associates, LLP
Qualifications
Education: Bachelors of Business Administration with an emphasis in Finance from Grand View College 1997.
Years of Experience: 15
Membership
IARFC, NAIFA
Services
Invoice, Estate Planning, Business Planning, Portfolio Management, Pension Planning, Executive Compensation Planning, personal Coach, Retirement Planning, Tax Planning, Tax Returns, Mutual Funds, CD Banking, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Medical Insurance, Business Coach, Charitable Planning, Education Plan, Healthcare Accounts, Asset Protection, BuySell, Compensation Plans

Data Provided by:
HR Brock Income Tax
(515) 262-3217
2809 E Walnut St
Des Moines, IA
 
Liberty Tax Service
(866) 871-1040
61 S Court St
Fairfield, IA

Data Provided by:
Jackson Hewitt
(515) 288-3324
4008 SW 9th St
Des Moines, IA

Data Provided by:
Craig Adamson
1000 Lindale Drive
Marion, IA
Company
Title: President
Company: Adamson Financial Planning
Type
Investment Advisor Rep: Yes
Education
BS Iowa State University 1996
Years Experience
Years Experience: 14
Service
Life Insurance,Investment & Portfolio Management,Long-Term Health Care Planning,Business Succession & Liquidation Planning,Estate Tax Planning,Asset Protection Strategies & Planning,Individual Income Tax Planning,Wealth Engineering,401k Rollover From Employer,Income for Life/ Preserve Principal,Medicare Planning,Health Care Insurance,Retirement Planning,Real Estate Investment Planning,Annuity Ideas & Strategy Planning,Planning For Personal Finances & Budgeting,Retirement Income Accumulation Plan

Data Provided by:
Bill Elson
3705 Grand Avenue
Des Moines, IA
Company
Company: Spectrum Financial Services
Service
Hourly Financial Planning Engagements,Fee Only Portfolio Management,Pension for Highly Compensated Owners,Stock Market Alternative,Wealth Management,Medicaid,Life Insurance,Investment & Portfolio Management,Long-Term Health Care Planning,Business Succession & Liquidation Planning,Estate Tax Planning,Asset Protection Strategies & Planning,Individual Income Tax Planning,Wealth Engineering,IRA, 401k, Roth IRA, QDRO Rollovers,CD Alternative,Medicare Planning,Health Care Insurance,Retirement Planning

Data Provided by:
Liberty Tax Service
(866) 871-1040
2125 W Broadway
Council Bluffs, IA

Data Provided by:
JK Harris&Company Tax Representation Firm-Call Now
(800) 621-0536
1200 35th Street, Suite 304-13
West Des Moines, IA

Data Provided by:
Mote Cpa Pc
(515) 271-8183
2011 Beaver Ave
Des Moines, IA

Data Provided by:
Data Provided by:

Tax Deduction Consulting: Dependent Care

Dependent Care Deductions

There is a tax credit for expenses paid for dependent care. This credit may be reduced if you receive certain dependent care benefits from an employer. In that case, you and be concerned with dependent care deductions.

There is a tax credit associated with the cost of dependent care. The rules and regulations for taking this credit, as would be expected, are very complex. The credit is limited to 35% of actual expenses. Since it is a credit, however, that comes directly off your taxes owed; it is an important fact in your individual tax obligation. In some cases, this credit will be reduced if you receive dependent care benefits. This is where the idea of dependent care deductions would come into play. To maintain equality with taxpayers that can claim the credit, the amount paid to the employee as a dependent benefit should be a deductions from your taxable income.

The types of benefits that can reduce your credit are direct cash payments intended for dependent care that come from your employer and the fair market value of care that is provided by the employer. Also, pre-tax contributions to a dependent care plan. The fair market value provision causes the most confusion to most tax payers. The logic here is that the credit exists to ease the way of tax payers who must care for dependents, and if this care is being provided in part by the employer through a free day care center, the way is being eased.

However, when the benefit is being paid to the employee directly to use for dependent care and this reduces their eligibility to take a credit, it is logical to exclude the income from the taxable income. The employer will be able to tell you if your plan is a qualified plan and eligible for such an exclusion.

The dependent care deductions can be claimed on Part III of Form 2441 or on Schedule 2 of Form 1040A. The tax payer can not use 1040EZ if they are claiming any dependent care deductions. If the tax payer is self employe...

Click here to read the rest of this article from BusinessTaxRecovery.com