Do you pay someone to watch your child or a disabled family member? Learn how you can deduct part or all of these expenses from your taxes.
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What is it?
The New York State Child and Dependent Care Tax Credit is New York State's version of the Federal Child and Dependent Care Tax Credit. The tax credit allows families to reduce the amount of tax they owe or even get money back from New York State.
What do I get?
If you pay someone to watch your children while you are at work, you might be able to deduct some of your childcare expenses from your New York State taxes. If you pay someone to provide care for an adult who you claim as a dependent on your taxes, you may also be able to deduct some of these expenses from your taxes.
This tax credit is fully refundable for New York State residents only, which means that you can get more money back from the credit than you paid in taxes to New York State throughout the year. For example, let's say you have one child and are eligible for the maximum credit ($1,155). If you paid only $400 in Federal taxes throughout the year, you can still get the full $1,155 back from the government.
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To get the credit, you must give the name
and address of the person or company that provides the child or dependent care. You must also give the
care provider's social security number or taxpayer identification number.
How much is the tax credit worth?
The tax credit is based on how much you earn per year and how much you spend on child and adult dependent care. The credit is worth 20% to 110% of the Federal Child and Dependent Care Tax Credit. For the 2006 tax year, the maximum credit you can get per child or dependent adult is $1,155 (or $2,310 for 2 or more children or dependent adults).
Here are some examples of how much you could get from this credit:
Let's say your annual household income is $26,400. If you have one child, you could get up to $916 refunded to you
from New York State.
Let's say you have two children and your annual household income is $23,000. You could get up to $1,023 refunded to you.
