Search: Family Services Index (Resources) > Tax Information Dependent Care Tax Information If you claim a tax credit on your tax return for child and dependent care expenses, your dependent care provider must complete a W-10 form. The form requires information on the dependent care provider such as name, address, and taxpayer identification number or social security number. If your dependent care provider does not comply with your request, you still must furnish their name and address. W-10 forms are available at your local post office, library or from an accounting firm. You may be eligible for the Earned Income Credit (Schedule EIC) of up to $4,300 if you have family earnings under $35,548 and have two or more qualifying children. A qualifying child is a child who: is your son, daughter, adopted child, grandchild, stepchild, or foster child; and under age 19, or under age 24 and a full-time student at the end of the year, or any age and permanently disabled; and lived with you for more than six months during the year (a foster child, must have lived with you for the whole year). Even if you don't owe taxes, you may be eligible for a refund check simply by claiming the credit. You may be eligible for Child and Dependent Care Credit (Form 2441) if you: have child care expenses for one or more children under age 13 who live with you; and pay for the care to enable you to work or look for work (if you are married, both you and your spouse must be working or looking for work, or one spouse may be a full-time student, or unable to care for him or herself). Families of all income levels are eligible. The higher your child care expenses and the lower the amount of your income, the larger your credit. You may be eligible for the Child Tax Credit (Form 8812) if you: have one or two children under age 17, you may be eligible for a Child Tax Credit; or if you have three or more children under age 17, you may be eligible for the Additional Child Tax Credit. For more information regarding tax credits, contact a tax accountant or the Internal Revenue Service. Dependent Care Reimbursement Accounts Dependent Care Reimbursement Accounts (DCRA) were established to help you pay for dependent care expenses on a tax-free basis. Tax savings with a DCRA can be significant. You do not pay federal, state, or local income taxes, nor do you pay Social Security (FICA) taxes on your deposits to your account or on the reimbursements paid to you. A DCRA is a good way to pay for expenses incurred for the care of your dependent child(ren), an incapacitated spouse, dependent parent, or a mentally or physically impaired dependent while you and/or your spouse work. You may deposit into your DCRA as little as $100 to a maximum of $5,000 per year ($2,500 if filing a "married filing separate" income tax return). As you make this estimate, remember to exclude time for vacations, holidays and possible illness when you may not be required to pay dependent care expenses. Also consider, if appropriate, that you may participate in more than one type of dependent care program throughout the year--each with different costs. One example could be a before and after school program during the school year and full-time child care during vacation periods. Your DCRA deposits are deducted from your paycheck each pay period. You will then be reimbursed in nontaxable dollars from your account for approved expenses. Unlike a bank account, your deposits and reimbursements are not subject to taxation. If you use a DCRA, you may not claim the same expenses under the Child and Dependent Care Tax Credit. Most people receive a greater tax savings with the DCRA. The tax credit applies only to federal taxes while the DCRA saves you federal, state and local income taxes, and Social Security (FICA) taxes. For more information about DCRA, inquire with your tax accountant or Human Resource Manager. Back to top