The Child and Dependent Care Tax Credit is a tax break for working people with qualifying dependents, which can help offset the costs of childcare expenses. It is calculated based on income and a percentage of expenses that you incur for the care of qualifying persons to enable you to go to work. For tax year 2021 only, the top credit percentage of qualifying expenses increased from 35 to 50. Some taxpayers receive this credit.
Expenses paid for items other than the care of your child (such as food and schooling) only if the items are incidental to the child’s care and cannot be separated from the total cost. School lunches may not be the first thing on a parent’s priority list, but they can be covered by child support along with many other expenses.
Expenses for care don’t include amounts paid for food, lodging, clothing, education, and entertainment. Child support can cover the cost of school lunches, which can be about $540 per day for a year. This includes expenses for tuition, books, fees, and supplies, school lunch, transportation, school-sponsored trips and special events, and uniforms.
In summary, the Child and Dependent Care Tax Credit is a tax break for working people with qualifying dependents, which can help offset the costs of childcare expenses. However, it is important to note that food is not a deductible child care expense and expenses for food, lodging, clothing, education, and entertainment are not included in the deduction.
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