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Can I deduct a Child and Dependent Care Credit on my tax
return?
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| If you paid someone to care for your dependent under age 13 or your disabled dependent
or spouse so that you could work or look for work, you may be able to claim the
Child and Dependent Care Credit on your tax return. Paying someone to provide day care or household
services for a member of your household during the work day will probably provide you with
a Child and Dependent Care Credit on your tax return.
To qualify for the Child and
Dependent Care Credit you must:
 | have paid for care expenses in order to earn
taxable income. If you are married both spouses
must work either full or part time. Spouses who are full time students or incapacitated
are excepted.; |
| pay more than 50% of the household maintenance costs for a qualifying dependent; |
| file your tax
return jointly if married, unless the separation rules apply; |
| hire someone other than your child (under age 19 at the end of the
tax year), your spouse, or a person you can claim as a dependent; |
| have qualifying expenses over and above any tax free reimbursements from your employer; |
| report on your tax return the name, address, and taxpayer identification number of the
child care provider. If the care provider is a tax exempt organization the taxpayer
identification number is not required. |
Employment-related expenses
that qualify for the Child and Dependent Care Credit include household services and expenses for care of the
qualifying individual. Expenses of attending a daytime summer camp qualify
for the Child and Dependent Care Credit if that is a
reasonable means of providing care during working hours. However, overnight camp expenses
do not qualify for the Child and Dependent Care Credit. A nursery school generally
qualifies for the Child and Dependent Care Credit, though an elementary
school does not qualify for the Child and Dependent Care Credit.
Child and Dependent Care
Credits are allowed for $3,000 of expenses for one dependent's care and
$6,000 for more
than one dependent's care. See the table below to determine your Child and Dependent Care
Credit.
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Maximum Allowable Child and Dependent Care Tax Credit |
| Adjusted Gross Income |
Credit Percentage |
One Dependent |
Two or more Dependents |
| $15,000 or less |
35% |
$1,050 |
$2,100 |
| $15,001-$17,000 |
34% |
$1,020 |
$2,040 |
| $17,001-$19,000 |
33% |
$990 |
$1,980 |
| $19,001-$21,000 |
32% |
$960 |
$1,920 |
| $21,001-$23,000 |
31% |
$930 |
$1,860 |
| $23,001-$25,000 |
30% |
$900 |
$1,800 |
| $25,001-$27,000 |
29% |
$870 |
$1,740 |
| $27,001-$29,000 |
28% |
$840 |
$1,680 |
| $29,001-$31,000 |
27% |
$810 |
$1,620 |
| $31,001-$33,000 |
26% |
$780 |
$1,560 |
| $33,001-$35,000 |
25% |
$750 |
$1,500 |
| $35,001-$37,000 |
24% |
$720 |
$1,440 |
| $37,001-$39,000 |
23% |
$690 |
$1,380 |
| $39,001-$41,000 |
22% |
$660 |
$1,320 |
| $41,001-$43,000 |
21% |
$630 |
$1,260 |
| $43,001 and over |
20% |
$600 |
$1,200 |
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Child and Dependent Care
Credit - Household and Dependent Tests
In order to claim the Child and Dependent Care Credit you must maintain as your
principal home a household for at least one of the following qualifying persons who live
with you:
| a child under 13 years of age whom you claim as a dependent; |
| your spouse if your spouse is physically or mentally incapable of caring for himself or
herself; |
| a person who is physically or mentally incapable of caring for himself or herself
regardless of age. |
Child and Dependent
Care Credit - Qualifying Expenses
The following qualifying expenses (maximum
$3,000 for one dependent, $6,000 for more
than one) must be reduced by any tax free reimbursements that you receive from your
employer:
| costs of caring for your dependent under age 13, incapacitated spouse,
or incapacitated dependent in your home;
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| ordinary domestic services in your home, such as cooking, cleaning, and
laundry that are partly for the care of the qualifying person;
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| out-of-the-home care costs for a child under age 13 in a day care
center, day camp, nursery school, or in the home of a baby sitter. These costs also
qualify for the Child and Dependent Care Credit if they are for a handicapped dependent, regardless of age, if he/she spends at
least eight (8) hours per day in your home.
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To claim the
Child and Dependent Care Credit, each child for whom the Child and Dependent Care Credit
is
claimed must have a Social Security or Taxpayer Identification Number.
Special Child and Dependent Care Credit
tax rules apply if your spouse is a student, is incapable of caring for himself or
herself, for separations, and for payments to relatives.
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Related tax
information about the Child and Dependent Care Credit |
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Child
Tax Credit
Tax
Credits |
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IRS publications about the Child and Dependent Care Credit:
For specific tax information on how to qualify for the Child and Dependent Care Credit,
refer to Tax
Topic 602, Child and Dependent Care Credit, or IRS Publication
503  , Child and Dependent Care Expenses. |
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Ask Julian Block your IRS and tax questions! |
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