The expenses for kindergarten do not qualify for the child and dependent care credit because kindergarten is primarily educational in nature. However, the part of the expenses of sending your child to school that is for your child's care may qualify for the credit, if it can be separated from the expenses of education. For example, the cost of an after school care program may qualify, even though the school tuition does not qualify. For more information refer to Tax Topic 602, Child and Dependent Care Credit, or Publication 503, Child and Dependent Care Expenses.

The actual mechanism for this type of plan is an agreement to voluntarily reduce your salary in return for an employer-provided fringe benefit. These plans give you a choice of whether to receive cash wages or a benefit for dependent care. You are receiving a tax benefit because you are not paying taxes on the money that is set aside to pay for the dependent care. For more information refer to Publication 17, Your Federal Income Tax, Publication 503, Child and Dependent Care Expenses, or Tax Topic 602, Child and Dependent Care Credit.

You must complete Part III of Form 2441 (PDF), Child and Dependent Care Expenses, (or Form 1040A, Schedule 2 (PDF), Child and Dependent Care Expenses for Form 1040A Filers) to exclude the dependent care benefits from income even if you cannot claim the child and dependent care credit. Enter your total employer-provided dependent care benefits on the correct line (this amount should appear in Box 10 of your Form W-2) and your qualified expenses on the correct line. The last lines of Part III will determine whether you can also take the credit and the dollar limit on qualified expenses. Also complete Part I, Persons or Organizations Who Provided the Care. For more information, refer to the instructions for Form 2441 (PDF) Form 2441, Child and Dependent Care Expenses, Publication 503, Child and Dependent Care Expenses, or Tax Topic 602, Child and Dependent Care Credit.

Yes, if you meet the other requirements to claim the child and dependent care credit, but are missing the social security number or other taxpayer identification required ID number of a provider, you can still claim the credit by demonstrating "due diligence" in attempting to secure this information.

If a provider of child care refuses to give the identifying information, the taxpayer can still claim the credit however, the taxpayer must provide whatever information is available about the provider (such as name and address) on the form used to claim the credit Form 2441 (PDF), Child and Dependent Care Expenses, or Form 1040A, Schedule 2 (PDF), Child and Dependent Care Expenses for Form 1040A Filers). The taxpayer should write "see page 2" in the columns requesting the missing information. The taxpayer should write at the bottom of page 2 that the provider refused to give the requested information. This statement will show that the taxpayer used due diligence in trying to secure and furnish the identifying information.

For more information refer to Form W-10 (PDF), Dependent Care Provider's Identification and Certification, the instruction for Form 2441 (PDF), Child and Dependent Care Expenses, Publication 503, Child and Dependent Care Expense, or Tax Topic 602, Child and Dependent Care Credit.

These payments may be have qualified child care expenses if the family member baby-sitting is not your dependent or your child under age 19 and you otherwise qualify to claim the child and dependent care credit. For more information, refer to Form 2441 (PDF) , Child and Dependent Care Expenses, Publication 503 , Child and Dependent Care Expenses, or Tax Topic 602 , Child and Dependent Care Credit.

Who is responsible for taxes on these payments depends on whether your family member is your employee or is self-employed (an independent contractor). See Publication 15-A (PDF) , Employer's Supplemental Tax Guide, for a discussion of how to tell whether an individual who is performing services for you is an employee or an independent contractor. If your family member is not your employee, then the family member will be responsible for paying income taxes and self-employment taxes on the income earned. If your family member is your employee, then you are generally responsible for withholding and paying the taxes. However, special rules apply to family employees. See Publication 15 , Circular E, Employer's Tax Guide, for these rules.

Day care payments for an elderly person may qualify as dependent care expenses if the person receiving the care is your spouse or other qualifying individual who lives with you and who is incapable of self-care. See generally chapter 34 of Publication 17, Your Federal Income Tax. For more information, refer to Publication 503 , Child and Dependent Care Expenses, or Tax Topic 602, Child and Dependent Care Credit.

Yes. The child tax credit can only be claimed by the parent claiming the exemption. In this case the noncustodial parent would qualify for the dependency exemption and therefore the child tax credit. Please refer to "Child tax credits" in the index to the Form 1040 Instructions, Individual Income Tax Return or the Form 1040A Instructions, U.S. Individual Income Tax Return. The referenced pages will explain who qualifies for this credit, and how to calculate it.

For more information refer to Publication 17, Your Federal Income Tax, Publication 972, Child Tax Credit, or Tax Topic 606, Child Tax Credit.

Generally, you can claim both the child tax credit and the child and dependent care credit on the same return if you qualify for both credits. If you qualify for one or both credits, you can claim the credits on Form 1040 (PDF), U.S. Individual Income Tax Return, or Form 1040A (PDF), U.S. Individual Income Tax Return. Please refer to "Child tax credit" in the index to the instructions for Form 1040 Instructions or the Form 1040A Instructions . The referenced pages will explain who qualifies for the child tax credit, and how to calculate it. Refer also to Publication 17, Your Federal Income Tax,Publication 503, Child and Dependent Care Expenses, Tax Topic 602 Child and Dependent Care Credit and Tax Topic 606, Child Tax Credit.

References:

• Form 1040 Instructions
• Form 1040A Instructions
• Tax Topic 606, Child Tax Credit

Yes, you can claim the child tax credit for a child with an ITIN (individual tax identification number) if you otherwise qualify.

Please refer to "Child tax credits" in the index to the instructions for Form 1040 Instructions or Form 1040A Instructions . The referenced pages will explain who qualifies for the child tax credit, and how to calculate it. For additional information, refer to Publication 972, Child Tax Credit or Tax Topic 606, Child Tax Credit.

Generally, to qualify for this credit, you must be age 65 or older or permanently and totally disabled and your income and nontaxable social security and other nontaxable pension benefits must be below specified amounts. For more information, refer to Tax Topic 603, Credit for the Elderly or the Disabled, or Publication 524, Credit for the Elderly or the Disabled.

The amount of an education credit is determined by the amount of qualified tuition and related expenses you paid for each eligible student and the amount of your Modified Adjusted Gross Income (MAGI). For more information, refer to Form 8863 (PDF), Education Credits, Publication 970, Tax Benefits for Education, or Tax Topic 605, Education Credits.

Expenses that qualify for an education credit are qualified tuition and related expenses required for enrollment or attendance at an eligible educational institution. An eligible educational institution includes most accredited colleges, universities, vocational schools, or other post-secondary educational institutions eligible to participate in the student aid programs administered by the Department of Education.

Qualified expenses do not include expenses student activities, athletics (unless the course is part of the student's degree program), for room and board, insurance, transportation, or similar personal, living, or family expenses. The cost of books and equipment are generally not qualified expenses because eligible educational institutions usually do not require that the cost of the books or equipment be paid to the institution as a condition of the student's enrollment or attendance at the institution.

No. Expenses paid to attend high school do not qualify for the education credits because a high school is not an eligible educational institution. In general , an eligible educational institution is an accredited college, university, vocational school, or other post-secondary educational institution including accredited, public, nonprofit, and proprietary (private-owned, profit-making) postsecondary institutions. Additionally, in order to be an eligible educational institution, the school must be eligible to participate in a student aid program administered by the Department of Education. For more information, refer to Form 8863 (PDF), Education Credits (Hope and Lifetime Learning Credits), Publication 970, Tax Benefits for Education, or Tax Topic 605, Education Credit.

No. A married individual filing a separate return can not claim the Hope Credit or the Lifetime Learning Credit.

For more information, refer to Form 8863 (PDF), Education Credits (Hope and Lifetime Learning Credits), Publication 970, Tax Benefits for Education, or Tax Topic 605, Education Credits.

References:

• Publication 970, Tax Benefits for Education
• Tax Topic 605, Education Credits
• Form 8863 (PDF), Education Credits (Hope and Lifetime Learning Credits)

You can not claim a credit for the amount of higher education expenses paid for with a tax-free scholarships.

For more information, refer to Form 8863 (PDF), Education Credits (Hope and Lifetime Learning Credits). Publication 970, Tax Benefits for Education, and Tax Topic 605, Education Credits, or Tax Topic 421, Scholarship and Fellowship Grants.

Yes, fill out Form 8863 (PDF), Education Credits (Hope and Lifetime Learning Credits).

You must reduce the total qualified expenses by the amount of any tax-free educational assistance. Do not reduce the qualified expenses by amounts paid with the student's earnings, loans, gifts, inheritances, and personal savings. Also, do not reduce the qualified expenses by any scholarship reported as income on the student's return or any scholarship which, by its terms, can not be applied to qualified tuition and related expenses.

For more information, refer to Publication 970, Tax Benefits for Education or Tax Topic 605, Education Credits.

References:

• Publication 970, Tax Benefits for Education
• Tax Topic 605, Education Credits
• Tax Topic 513, Educational Expenses
• Form 8863 (PDF), Education Credits (Hope and Lifetime Learning Credits)

Higher education expenses paid by the proceeds of a government subsidized loan expenses may qualify for the credit if you must repay the loan. The credit is claimed in the year in which the expenses are paid, not in the year in which the loan is repaid.

For more information, refer to Form 8863 (PDF), Education Credit (Hope and Lifetime Learning Credits), Publication 970, Tax Benefits for Education, or Tax Topic 605, Education Credits.

Generally, you can claim the Hope Credit if all three of the following requirements are met.

1. You pay qualified tuition and related expenses for the first 2 years of postsecondary education.
2. You pay the tuition and related expenses for an eligible student.
3. The eligible student is you, your spouse, or a dependent for whom you claim an exemption on your tax return.

You cannot claim the Hope Credit if any of the following applies.

1. Your filing status is married filing separately.

2. You are listed as a dependent in the Exemptions section of another person's tax return (such as your parents'). See Who May Claim a Dependent's Expenses, later.

3. Your modified adjusted gross income can not be above a certain dollar amount. See, chapter 2 of Publication 970, Tax Benefits for Education . Modified adjusted gross income is explained later under Does the Amount of Your Income Affect the Amount of Your Credit

4. You (or your spouse) were a nonresident alien for any part of the tax year and the nonresident alien did not elect to be treated as a resident alien for tax purposes. For more information, refer to Publication 519, U.S. Tax Guide for Aliens.

5. You claim the Lifetime Learning Credit for the same student in the same year. See, chapter 2 of Publication 970

In general, qualified tuition and related expenses are tuition and fees required for enrollment or attendance at an eligible educational institution

Eligible Education Institution. In general, an eligible educational institution is an accredited college, university, vocational school, or other postsecondary educational institution, including accredited, public, nonprofit, and proprietary (privately-owned, profit-making) postsecondary institutions. Additionally, in order to be an eligible educational institution, the school must be eligible to participate in a student aid program administered by the Department of Education. The educational institution should be able to tell you if it is an eligible educational institution.

For a taxpayer to claim the Hope Credit, the student for whom you pay qualified tuition and related expenses must be an eligible student. .

1. Did not have expenses that were used to figure a Hope Credit in any 2 earlier tax years.
2. Had not completed the first 2 years of postsecondary education (generally, the freshman and sophomore years of college) before this tax year.
3. Was enrolled at least half-time in a program that leads to a degree, certificate, or other recognized educational credential for at least one academic period beginning in the tax year.
4. Was free of any federal or state felony conviction for possessing or distributing a controlled substance as of the end of the tax year.

For additional information, refer to Form 8863 (PDF), Education Credits (Hope and Lifetime Learning Credit) or Tax Topic 605, Education Credits.

This credit is a nonrefundable tax credit with a dollar limit per family that is available for qualified tuition and related expenses of higher education whether the student is at the undergraduate or graduate level. The Lifetime Learning Credit is calculated by taking a percentage of the qualified educational expenses paid. For additional information refer to Publication 970, Tax Benefits for Education, Tax Topic 605 , Education Credits, or Form 8863 (PDF), Education Credits (Hope and Lifetime Learning Credits).

Generally, you can claim the Lifetime Learning Credit if all three of the following requirements are met.

1. You pay qualified tuition and related expenses of higher education.
2. You pay these the tuition and related expenses for an eligible student.
3. The eligible student is you, your spouse, or a dependent for whom you claim an exemption on your tax return.

The Lifetime Learning Credit is based on qualified tuition and related expenses you pay for yourself, your spouse, or a dependent for whom you can claim an exemption on your tax return.

As with the Hope Credit, generally, the Lifetime Learning Credit is allowed for qualified tuition and related expenses paid in the tax year for an academic period beginning in that year or in the first 3 months of the following year.

For purposes of the Lifetime Learning Credit, an eligible student is a student who is enrolled in one or more courses at an eligible educational institution to acquire or improve job skills

In general, an eligible educational institution is an accredited college, university, vocational school, or other postsecondary educational institution, including accredited, public, nonprofit, and proprietary (privately-owned, profit-making) postsecondary institutions. Additionally, in order to be an eligible educational institution, the school must be eligible to participate in a student aid program administered by the Department of Education. The educational institution should be able to tell you if it is an eligible educational institution.

You cannot claim the Lifetime Learning Credit if any of the following apply.

1. your filing status is married filing separately.

2. you are listed as a dependent in the Exemptions section on another person's tax return (such as your parent's). (See Who Can Claim a Dependent's Expenses, later.)

3. your modified adjusted gross income is above a specified amount. (Modified adjusted gross income is explained later under Does the Amount of Your Income Affect the Amount of Your Credit. )

4. you (or your spouse) were a nonresident alien for any part of the tax year and the nonresident alien did not elect to be treated as a resident for tax purposes. (For additional information, refer to Publication 519 U.S. Tax Guide for Aliens); or

5. you claim the Hope Credit for the same student in same year

For more information, refer to Publication 970, Tax Benefits for Education, Tax Topic 605, Education Credits, or Form 8863 (PDF), Education Credits (Hope and Lifetime Learning Credits).

The cost of college classes taken while a student is attending high school may qualify for the education tax credit if the requirement for the credit are met.

For more information, refer to Publication 970, Tax Benefits for Education, Tax Topic 605, Education Credits, or Form 8863 (PDF), Education Credits (Hope and Lifetime Learning Credits).

The Work Opportunity Credit provides an incentive to hire individuals from targeted groups that have a particularly high unemployment rate or other special employment needs. In most cases, the credit can be as much as 40% of the "qualified first year wages" you pay to individuals who begins to work for you before September 30, 2011. If the individual is a disabled veteran, the credit can be twice as much. If the individual is a long-term family assistance recipient, the credit is available over a 2-year period and is calculated on a greater amount of wages. The credit is claimed by filing Form 5884 (PDF), Work Opportunity Credit, with the business's tax return.

An individual is a member of a targeted group if he or she is a:

• Qualified recipient of assistance under temporary assistance for needy families (TANF).
• Qualified veteran.
• Qualified ex-felon.
• Designated community resident
• High-risk youth.
• Vocational rehabilitation referral.
• Qualified summer youth employee.
• Qualified food stamp recipient.
• Qualified SSI recipient.
• Long-term family assistance recipient

An individual is not considered a member of a targeted group unless your state employment security agency certifies him or her as a member. This certification requirement can be satisfied in either of two ways:

1) On or before the day on which the individual begins work for you, you have received a certification from your state employment security agency that the individual is a member of a targeted group, or

2) On or before the day you offer employment to an individual, the individual completes page 1 of Form 8850 (PDF), Pre-Screening Notice and Certification Request for the Work Opportunity Credits, you complete page 2 of the form, and you send the form to your state workforce agency no later than the 28th day after the individual begins work.

You must receive the certification before claiming the credit.

Refer to Tax Topic 750, Employer Tax Information, and Tax Info for Business, on this site for other employer information.