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Who Can Claim the Child Care Credit in Maryland?
Under federal law, the child care credit may be claimed on either a joint tax return or on a separate return by a person eligible as "Head of Household."
The child care credit provides tax credits based on income levels for employment-related child care expenses up to $3,000 for 1 child or $6,000 for 2 or more children.
This credit is separate from the "child credit" of $1,000.00 per child per year, which is provided to the parent who claims the dependency exemption.
To qualify as "Head of Household," you must maintain a home that was the principal home of your child for more than one-half of the tax year, be eligible to claim the dependency exemption for that child, furnish more than one-half of the costs to maintain the home and must not have resided with the other parent for the last 6 months of the tax year.
Unlike the dependency exemption, the custodial parent cannot transfer the child care credit to the non-custodial parent.
Under Maryland law, child support is determined based on the Income Shares Model. Therefore the monthly support amount for the child is proportionally shared between the two parents based on their incomes, past W-2s, and child support worksheets. One parent will then pay the other parent his or her share of child support. Considerations will also be made for existing debt, property settlement, mortgages, other children or any other financial considerations.
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