Federal Child and Dependent Care Tax Credit

Do you pay someone to watch your child or a disabled family member? Learn how you can deduct part or all of these expenses from your taxes.


	What is it? The Child and Dependent Care Tax Credit is a Federal tax credit that allows families to reduce the amount of tax they owe or even get money back from the Federal Government. What do I get? If you pay someone to watch over your children while you are at work, you might be able to deduct some of your childcare expenses from your Federal taxes. If you pay someone to provide care for an adult who you claim as a dependent on your taxes, you may also be able to deduct some of your expenses from your Federal taxes. This tax credit is not refundable, which means that you can't get more money back from the credit than you paid in taxes to the Federal government throughout the year. For example, let's say you have one child and are eligible for the maximum credit ($1,050). If you paid $400 in Federal taxes throughout the year, you will only get $400 back from the Federal government from this credit. You could only get the full $1,050 refunded to you if you had paid $1,050 or more in Federal taxes. How long do you get it? The Federal Child and Dependent Care Tax Credit is a refund of some of the childcare and dependent care expenses that you paid for an entire year. You will get the credit all at once from the IRS in a tax refund.To calculate the credit, you have to know how much you paid in work-related childcare expenses over the year. You can only count those work-related childcare expenses that you paid by December 31st (of the year you are counting your expenses.)


	To get the credit, you must give the name and address of the person or organization that provides the care for your child or dependent. You must also give the care provider's social security number or taxpayer identification number.

How much is the tax credit worth?

The tax credit is based on how much you earn per year and how much you spend on child and adult dependent care. The maximum credit you can get per child or dependent adult is $1,050.

For example, let's say you are married. If you and your spouse earn $23,500 combined per year, you can get a credit for up to $900 per child (or dependent adult) or $1,800 total for 2 or more children (or dependent adults). If you are single and you earn $18,500 per year, you can get a credit for up to $990 per child (or dependent adult) or $1,980 total for 2 or more children (or dependent adults).

HOUSEHOLD EARNED INCOME LIMITS

annual household earned income maximum per child/dependent adult maximum total credit
(for two or more
children/dependent adults)

$0 - $15,000 $1,050 $2,100

$15,001 - $17,000 $1,020 $2,040

$17,001 - $19,000 $990 $1,980

$19,001 - $21,000 $960 $1,920

$21,001 - $23,000 $930 $1,860

$23,001 - $25,000 $900 $1,800

$25,001 - $27,000 $870 $1,740

$27,001 - $29,000 $840 $1,680

$29,001 - $31,000 $810 $1,620

$31,001 - $33,000 $780 $1,560

$33,001 - $35,000 $750 $1,500

$35,001 - $37,000 $720 $1,440

$37,001 - $39,000 $690 $1,380

$39,001 - $41,000 $660 $1,320

$41,001 - $43,000 $630 $1,260

above $43,000 $600 $1,200

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annual household earned income	maximum per child/dependent adult	maximum total credit (for two or more children/dependent adults)
$0 - $15,000	$1,050	$2,100
$15,001 - $17,000	$1,020	$2,040
$17,001 - $19,000	$990	$1,980
$19,001 - $21,000	$960	$1,920
$21,001 - $23,000	$930	$1,860
$23,001 - $25,000	$900	$1,800
$25,001 - $27,000	$870	$1,740
$27,001 - $29,000	$840	$1,680
$29,001 - $31,000	$810	$1,620
$31,001 - $33,000	$780	$1,560
$33,001 - $35,000	$750	$1,500
$35,001 - $37,000	$720	$1,440
$37,001 - $39,000	$690	$1,380
$39,001 - $41,000	$660	$1,320
$41,001 - $43,000	$630	$1,260
above $43,000	$600	$1,200