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Tax Deduction Consulting: Dependent Care Washington DC

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.

Joseph Bonaccorsy
2011 Crystal Dr.
Arlington, VA
Company
Title: Financial Advisor
Company: Core Advisory, LLC
Type
Registered Investor: Yes
Education
Florida Tech /CFP
American Intercontinetal/BA - Maga Cum Laude
Institute of Business Finance/MSFS
Years Experience
Years Experience: 15
Service
Wealth Management,Life Insurance,Investment & Portfolio Management,Long-Term Health Care Planning,Annuity Ideas & Strategy Planning,Planning For Personal Finances & Budgeting,Retirement Income Accumulation Planning,Business Income Tax Planning,Fee-Only Comprehensive Financial Planning,Stock Market Alternative,Disability Insurance,Retirement Planning,Real Estate Investment Planning,Commission-Only Financial Planning (Full Disclosure),Insurance & Risk Management Planning,Retirement Income Distribu

Data Provided by:
Barbara J. OLeary (RFC®), CEP
(703) 370-7666
101 South Whiting Street Suite 203
Alexandria, VA
Qualifications
Years of Experience: 18
Membership
IARFC, NICEP
Services
Invoice, Estate Planning, Portfolio Management, Retirement Planning, Tax Planning, Tax Returns, Employee Benefits, Stocks and Bonds, Mutual Funds, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Medical Insurance, Healthcare Accounts, Compensation Plans

Data Provided by:
B. Frank Doe (RFC®), CFP, MBA
(703) 272-7177
10560 Main Street, Suite 316
Fairfax, VA
Company
Frank & Darby Doe
Qualifications
Education: MBA
Years of Experience: 33
Membership
IARFC, FPA
Services
Invoice, Estate Planning, Business Planning, Retirement Planning, Tax Planning, Tax Returns, Mutual Funds, Annuities

Data Provided by:
Ari Group Llc
(202) 723-5059
1731 7th St Nw
Washington, DC

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Atab Tax Service
(202) 829-2822
536 Columbia Rd Nw
Washington, DC
 
Charles Stough
1940 Duke St, Suite 200
Alexandria, VA
Company
Title: LPL Wealth Planner
Company: WealthPath LLC
Type
Investment Advisor Rep: Yes
Education
University of Oklahoma/MHR
University of Florida/BA
Years Experience
Years Experience: 7
Service
Pension for Highly Compensated Owners,Income for Life/ Preserve Principal,Alternative Investments,Retirement Planning,Long-Term Health Care Planning,Business Succession & Liquidation Planning,Estate Tax Planning,Asset Protection Strategies & Planning,Hourly Financial Planning Engagements,IRA, 401k, Roth IRA, QDRO Rollovers,Wealth Management,Annuities,Alternative Asset Class Planning,Annuity Ideas & Strategy Planning,Planning For Personal Finances & Budgeting,Retirement Income Accumulation Planni

Data Provided by:
Mr. Vijay K. Khetarpal (RFC®), CFP, CHFC, CLU
(703) 356-4888
8607 Westwood Center Dr #300
Vienna, VA
Company
Integrity Financial Group, LLC
Qualifications
Education: B.A (Honors) Economics, St. Stephens College, DelhiAll India HS Humanities, Mayo College, Ajmer
Years of Experience: 27
Membership
IARFC, MDRT, FPA, SFSP, NAIFA
Services
Invoice, Estate Planning, Business Planning, Pension Planning, Executive Compensation Planning, personal Coach, Retirement Planning, Tax Planning, Employee Benefits, Stocks and Bonds, Mutual Funds, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Medical Insurance, Group Insurance, Education Plan, Healthcare Accounts, Asset Protection, BuySell, Compensation Plans

Data Provided by:
Mr. Martin J. Beeson (RFC®), CEP, CSA
(866) 388-0110
2135 Defense Hwy Ste 6
Crofton, MD
Company
The Planning Companies
Qualifications
Years of Experience: 19
Membership
IARFC, NICEP
Services
Invoice, Estate Planning, Pension Planning, Executive Compensation Planning, Retirement Planning, Tax Planning, Seminars Work, Employee Benefits, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Charitable Planning, Education Plan, Healthcare Accounts, Charitable Foundations, Asset Protection, BuySell

Data Provided by:
Express Tax Svc
(202) 332-0400
1541 7th St NW
Washington, DC

Data Provided by:
Multistate Tax Commission
(202) 624-8699
444 N Capitol St NW Ste 425
Washington, DC

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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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