SC Child care Resource and Referral Network - child care provider and parent resources for South Carolina

parent services...financial and tax info

The ABC Child Care Program (www.state.sc.us/dss/abc/index.html) South Carolina parents who meet established income guidelines may be eligible for assistance with the cost of their weekly child care. Income eligible parents must be working, in school, or in a training program.

State Tax Credit Information
Child and Dependent Care Tax Credit. This tax credit has several requirements. However, if you quality for the credit, you can deduct a lot of the child care or dependent care expenses paid during the tax year.

This credit is best for:

  • Working parents (both parents have to work) with children under the age of 13 who are in child care or in an after school care program.
  • One parent who works and the other parent is a full-time student who doesn't work and they have children under the age of 13 who are in child care or in an after school care program.
  • Anyone who pays for the care of his or her spouse who has a disability and who is unable to care for himself or herself.
  • Anyone who pays for the care of an ill or disabled parent.

To receive this credit you must:

  • Work and earn enough to be taxed on that income.
  • Pay for the care of a dependent: a child under 13 years old, a spouse with a disability, or a parent who needs care while you are at work.

Federal Tax Credit Information (www.irs.gov)

Internal Revenue Service (IRS): 800-829-1040

The IRS is the nation's tax collection agency and administers the Internal Revenue Code enacted by Congress. Information about how to contact a local office of the IRS is available on the Web at
http://www.irs.gov/localcontacts/index.html.

In order for families to claim the Child and Dependent Care credit, they must file a Federal income tax return - either Form 1040 or 1040A - and attach a separate "schedule" or form with their return. With Form 1040, families must attach Form 2441. With Form 1040A, families use Schedule 2. Free copies of these forms can be obtained by contacting the IRS at 800-TAX-FORM (829-3676) or on the Web at http://www.irs.gov/formspubs/index.html.

For information on other topics, contact the IRS at 800-829-4477 to listen to pre-recorded messages covering about 150 tax topics. For additional information, call the IRS at 800-829-1040.

Additional information can be found at:
• http://nccic.acf.hhs.gov/index.cfm
• http://www.naccrra.org/policy/?id=45