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Determine your budget. Start early. Sign up for a Dependent Care Account. Apply your child care tax credit. Talk to HR.
State child care assistance may be available to parents in high school in need of child care. Check out our Child Care Resources by State Map and then click Child Care Assistance under the Financial Assistance category. You can contact your state or local office and ask about funds for parents in high school.
There are different programs available to you to help pay for child care. Some programs have income requirements and some programs might be offered through local providers. You can also call your local Child Care Resource & Referral (CC&R) agency about options that might offer help to pay for child care.
Free government child and daycare assistance programs. Low income families that are working, in school or job training can receive assistance in paying for high-quality child and day care. This assistance is made available to eligible families and parents who are training for a job or that are currently working.
State Child Care Assistance Programs. In cases in which health or other disabilities exist, older children may also be eligible for the program. The program pays for part of the daycare costs, while parents co-pay for a portion based on the size of the family and the amount of their income.
How much can you deduct? The child-care expense deduction is limited to $8,000 annually for a child under the age of seven, $5,000 for other eligible children aged seven to 16, and $11,000 for a child who qualifies for the disability tax credit.
The maximum amount of care expenses you're allowed to claim is $3,000 for one person, or $6,000 for two or more people. If your employer gives you money to pay child care expenses, or if you have money withheld from your pay on a pre-tax basis, you must subtract this money received from your allowable expenses.
For 2019, the standard deduction amount for an individual who may be claimed as a dependent by another taxpayer cannot exceed the greatest of $1,100 or the sum of $350 and the individual's earned income (not to exceed the regular standard deduction amount).
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