Is claiming childcare expenses only beneficial if you are going to owe on your taxes?
Legs asked:
For instance.. without claiming it, if someone were to get $300 back would it increase that amount to claim the childcare expenses? Or would it only benefit a person who was going to owe taxes?
I hope that makes sense..
Thanks.
For instance.. without claiming it, if someone were to get $300 back would it increase that amount to claim the childcare expenses? Or would it only benefit a person who was going to owe taxes?
I hope that makes sense..
Thanks.
If you pay tax for the year, including what was withheld that doesn’t get refunded, you would benefit from the credit. It doesn’t matter whether you owe or get a refund when you actually file your return.
Claiming child care expenses is a credit toward the taxes you owe on line 46 of 2007 1040. I think you are talking about the bottom line for owing or receiving a refund. Some people owe tax on that line but they have credits that decrease that tax and depending on their return it would increase their refund. If the tax on line 46 is $0.00 then it wouldn’t increase their refund because the credits are made to reduce your tax not necessarily increase your refund.