Child Tax Deduction Definition
A child tax deduction is a deduction that caregivers of dependent children can claim to lower their tax bill.
Child Tax Deduction Extended Definition
Child tax deductions include the child tax credit and the child and dependent care credit.
Taxpayers with qualifying dependent children can claim the child tax credit. Those who pay for the care of a dependent (e.g., daycare) while they work or actively look for work can claim the child and dependent care credit.
You can claim a child tax deduction on your tax return to receive a tax credit. Caregivers may claim both the child tax credit and the child and dependent care credit.
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What’s the Child Tax Credit, and Why Should Business Owners Know About It?
Last Updated By
Rachel Blakely-Gray | Feb 15, 2023