The Tax Questions Blog

Posts Tagged ‘economics’

Question: How does childcare and taxes work?

my husband works full time and I have enlisted in the military... we have 2 small children, they will be going into full time childcare which will be costing us almost the same as our mortgage payment.
I was wondering how does the tax work at the end of the year? is childcare deductible or something like that? I would appreciate any help.

Answer: There is a child care credit available for the time when the kids are in child care because you are both working. The amount eligible for the credit is up to $3000 per child, or $6000 for more than one child. Your credit is a percentage of that - if your total joint income is over $43,000, you get a credit of 20% of the eligible expenses, or up to $1200. That assumes that you have that much federal income tax liability for the year - if you don't, then the credit is limited to the amount that would zero out your tax liability.

Brookfield Zoo gets $15.6M from state for repairs

The Tribune's Clout Street blog reports: Among the spate of announcements an election-seeking Gov. Pat Quinn has made to tout a new state public works program, the one he made today might be the most appropriate in a state known for its dysfunctional politics and deficit-ridden government. He announced funding to repair a zoo. No, not to fix the Statehouse in Springfield, where the ruling state ...

Your Tax Dollars At Work (I'm in the blue gloves)