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Tax Deduction Consulting: Dependent Care Manchester NH

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. James E. Knee (RFC®), MBA
(603) 224-1010
6 Loudon Road, Suite 505
Concord, NH
Company
Sterling Financial Services, LLC
Qualifications
Education: B.S., University of Bridgeport;MBA, Southern New Hampshire University;Advanced Certificate in International Business;Series 24 Registered Principal License;Series 7 and 63 Securities License;NH Health and Life Insurance License
Years of Experience: 26
Membership
IARFC, FPA
Services
Invoice, Estate Planning, Pension Planning, Retirement Planning, Tax Planning, Tax Returns, Seminars Work, Employee Benefits, Education Plan, Asset Protection

Data Provided by:
Fishers Income Tax Svc
(603) 622-2057
616 Mast Rd
Manchester, NH

Data Provided by:
H&R Block
(603) 647-6974
1328 Hooksett Rd
Hooksett, NH

Data Provided by:
Steele Associates
(603) 673-4660
54 Nashua St
Milford, NH

Data Provided by:
J Walker & Co LLC
(603) 224-4829
104 N State St
Concord, NH
Hours
Mon 09:00 AM-05:00 PM;Tue 09:00 AM-05:00 PM;Wed 09:00 AM-05:00 PM;Thu 09:00 AM-05:00 PM;Fri 09:00 AM

Data Provided by:
H&R Block Inside Northside Plaza
(603) 628-1976
67 HAMEL DR UNIT B4A
MANCHESTER, NH

Data Provided by:
Danis & Company
(603) 656-9041
169 South River RD #14
Bedford, NH
 
Melanson Heath & Co PC - Linda Imhoff CPA
(603) 882-1111
102 Perimeter Rd
Nashua, NH

Data Provided by:
Kline & Company, CPA, P.C.
(603) 881-8185
141 Main Street
Nashua, NH
 
Devereaux & Ean-Dixon Bookkeeping LLC
(603) 717-1214
PO Box 2794
Concord, NH
Prices and/or Promotions
10% off of individual tax return prep

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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...

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