IRS Publication 503: Child And Dependent Care Expenses

AAA

DEFINITION of 'IRS Publication 503: Child And Dependent Care Expenses'

A document published by the Internal Revenue Service that outlines the criteria which must be met in order for a taxpayer to deduct expenses for the care of children and dependents. IRS Publication 503 indicates that expenses can be claimed only if they are incurred in order to allow the taxpayer to work or look for employment.

INVESTOPEDIA EXPLAINS 'IRS Publication 503: Child And Dependent Care Expenses'

In order to claim tax credits for children or dependents, certain criteria must be met: the persons claimed must be qualified, the taxpayer must have worked at some point during the year, expenses must be incurred so that the taxpayer could work or look for work, and care payments must be made to a non-dependent.


Up to 35% of expenses related to the care of children and dependents can be claimed by a taxpayer. In addition, expenses related to the care of children apply only to children under the age of 13.

RELATED TERMS
  1. Income Tax

    A tax that governments impose on financial income generated by ...
  2. Tax Return

    1. The tax form or forms used to file income taxes with the Internal ...
  3. Itemized Deduction

    A deduction from a taxpayer's taxable adjusted gross income that ...
  4. Expense

    1. The economic costs that a business incurs through its operations ...
  5. Internal Revenue Service - IRS

    A United States government agency that is responsible for the ...
  6. Guideline Premium And Corridor ...

    A test used to determine whether an insurance product can be ...
Related Articles
  1. Taxes

    Changes In Tax Legislation And Regulation

    Keeping on top of these amendments can help you avoid penalties and take advantage of benefits.
  2. Retirement

    Tax Tips For The Individual Investor

    We give you seven guidelines to help you keep more of your money in your pocket.
  3. Taxes

    How To Appeal Your IRS Audit

    The auditor's review isn't always the last word. Many taxpayers who are audited can successfully appeal their audits and save thousands of dollars.
  4. Taxes

    Surviving The IRS Audit

    Keeping thorough records and knowing the penalties make this experience easier than you'd expect.
  5. Taxes

    7 Year-End Tax Planning Strategies

    Do you have a capital loss that could be booked and used to offset future tax liabilities? If so, it may be time to sell.
  6. Taxes

    3 Common Tax Questions Answered

    We clarify some rules that often puzzle taxpayers.
  7. Economics

    EU Probes Tax Laws To Catch Corporate Cheaters

    Recently, the EU has launched an investigation into tax deals between Amazon and the country of Luxembourg.
  8. Economics

    The Economic and Social Effects of Corruption

    Corruption results in inefficiencies in the operations of emerging economies, and prevents such economies from reaching the maximum level of development.
  9. Economics

    Can state and local governments in the US run fiscal deficits?

    Discover why most state and local governments do not – or cannot – run fiscal deficits in the same manner as the U.S. federal government.
  10. Professionals

    How are an employee's fringe benefits taxed?

    Discover how receiving fringe benefits can increase total compensation for employees and how it is important to understand how these benefits are taxed.

You May Also Like

Hot Definitions
  1. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  2. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  3. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
  4. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be ...
  5. Break-Even Analysis

    An analysis to determine the point at which revenue received equals the costs associated with receiving the revenue. Break-even ...
  6. Key Performance Indicators - KPI

    A set of quantifiable measures that a company or industry uses to gauge or compare performance in terms of meeting their ...
Trading Center