Child Tax Deduction Definition

Term Definition>
A child tax deduction may consist of a Child Tax Credit and/or the Child and Dependent Care Credit. These deductions are claimed by caregivers of dependent children, but the Child and Dependent Care Credit is for those who place their children with a child care provider.

Extended Definition
A child tax deduction is claimed on the tax return to receive a tax credit. The Child Tax Credit is a credit available to caregivers of dependent children under 17 with whom the child resides for more than half the year. The Child and Dependent Care Credit is intended to provide assistance for caregivers who place their child with a temporary caregiver- a day care center or babysitter, for example- so that the primary caregiver can work or look for work. Caregivers may claim both the Child Tax Credit and the Child and Dependent Care Credit

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Claiming Tax Credits for Dependent Children