You may be able to reduce your income tax liability through the Child and Dependent Care Credit if you paid some one to care for a child under the age of 13 or a qualifying spouse or dependent so that you could work or look for work. With the credit you can deduct a percentage of the amount of work-related childcare expenses your paid to some one who provided care to your dependent(s). The actual percent you can deduct varies depending on your income, however the maximum is 35%. However, you must reduce your qualifying expenses by any benefits provided by your employer for dependent care.

There are a few restrictions that go along with this credit:

• Dependent must be your spouse, your child over the age of 13, and other dependents must be physically or mentally unable to care for themselves.

• You must have earned income from wages, salaries, tips, self-employment, or any other employee compensation.

• The payments for care cannot be paid to some one you claim as one of your dependents on your income tax returns.

• In addition the payments cannot be made to a child of yours under the age of 19, even if they are not one of your dependents.

• Your filing status must be single, married filing jointly, head of household, or qualifying widow(er) with a dependent child.

• The care must have been provided for one or more persons qualifying to be claimed as a dependent.

• The qualifying person you claim must have lived with you for more than half of the tax year.

For more information on the Child and Dependent Care Credit you should check out IRS Publication 503, Child and Dependent Care Expenses.