How to Claim the Child and Dependent Care Credit on Your Taxes

What the Child and Dependent Care Credit actually does

The Child and Dependent Care Credit lets you reduce the federal income tax you owe based on what you paid for childcare while you worked. You don't get money back if you owe nothing — the credit only shrinks a tax bill you already have. The amount depends on your income and how much you spent on care, and it's claimed on your federal tax return, not through a separate application.

This is different from the Child Tax Credit, which is a separate credit that doesn't require you to have paid for childcare. Many families can claim both, but they use different forms and have different income limits.

Key Takeaways

• You claim this credit on Form 2441 when you file your federal taxes, not by submitting a separate form to the IRS.
• The credit covers childcare expenses you paid so you could work or look for work, including daycare, preschool, summer camp, and in-home care.
• Your income determines the percentage of expenses the credit covers — higher income means a smaller percentage, ranging from 20% to 35% of what you spent.
• You need the name, address, and tax ID of the person or facility you paid for care, so gather those details before you file.
• If you use a dependent care account through your employer, you must claim the credit based on what you actually spent, not what you set aside.

Who can claim this credit

You can claim the credit if you paid for childcare for a child under 13, a disabled spouse, or a disabled dependent adult, and you had earned income during the year. "Earned income" means wages, self-employment income, or income from a job — not investment income, Social Security, or unemployment benefits. Both spouses in a married couple must have earned income to claim the credit together, though one spouse can have very little income.

You must also have been the child's custodian for more than half the year. If your child lived with you for only part of the year due to custody arrangements, you may still may have access to, but the rules depend on your specific situation and your filing status.

There is no income limit to claim the credit, but your income determines how much of your expenses the credit covers. The higher your income, the smaller the percentage.

How much of your expenses the credit covers

The credit covers between 20% and 35% of the childcare expenses you paid, depending on your adjusted gross income (AGI). If your AGI is $15,000 or less, the credit covers 35% of expenses. For every $2,000 your income rises above $15,000, the percentage drops by 1%, until it reaches 20% at an AGI of $43,000 or more.

The maximum amount of expenses you can claim is $3,000 per year for one child or dependent, or $6,000 for two or more. This means the credit itself maxes out at $1,050 (35% of $3,000) for one child if your income qualifies you for the 35% rate, or $600 (20% of $3,000) if your income is higher.

If you use a dependent care account through your employer, you reduce the expenses you claim by the amount you contributed to that account. For example, if you spent $4,000 on childcare and put $2,000 into a dependent care account, you claim the credit on $2,000 of expenses.

What expenses count toward the credit

Childcare expenses that count include daycare centers, family childcare providers, preschool, after-school care, summer day camp, and in-home babysitters or nannies. The care must be for a child under 13, or for any age if the child is disabled and you claim them as a dependent.

Expenses that do not count include overnight camp, school tuition (even if the school provides childcare), kindergarten or higher grades at a public school, and care provided by a spouse or a child you claim as a dependent. If a family member provides care and you pay them, you can only claim the credit if they are not your spouse and not a dependent you claim on your taxes.

You can only claim expenses for care that allowed you to work or actively look for work. If you were not working during a month, you cannot claim childcare expenses for that month, even if you paid for care.

Information you need before you file

Gather the name, address, and tax identification number (either a Social Security number or employer identification number) for each person or facility you paid for childcare. If the provider doesn't have a tax ID, ask for their Social Security number — you will need one or the other to complete Form 2441.

Collect receipts or statements showing how much you paid each provider during the year. If you used a dependent care account through your employer, get the statement showing how much you contributed and how much was used.

If you are married and filing jointly, both spouses need to provide their Social Security numbers on the form. If you are filing as head of household or single, you will need your own.

How to claim the credit on your tax return

The credit is claimed on Form 2441: Child and Dependent Care Expenses, which you attach to your federal tax return. You fill in the expenses you paid, the provider information, and your income, and the form calculates how much credit you receive. The credit then reduces your total tax bill.

If you file your taxes yourself using tax software, the software will walk you through Form 2441 and ask you for the provider information and expenses. If you use a tax preparer, bring them the provider names, addresses, tax IDs, and the amounts you paid.

You file Form 2441 with your regular tax return by the tax deadline — usually April 15, though the IRS sometimes extends this date. You cannot claim the credit after the deadline has passed unless you file an amended return.

What happens if you cannot find the provider's tax ID

If a childcare provider refuses to give you their tax ID or Social Security number, you can still file Form 2441 with the information you do have — their name and address. However, the IRS may contact you later asking for the missing ID, and you may not receive the credit until you provide it.

Before you file, make one more attempt to get the ID. Call the facility, ask in writing, or check any receipts or contracts you signed. If the provider is a business, you can sometimes find their employer identification number through your state's business registration database or by calling your state's revenue department.

If you genuinely cannot obtain the ID despite reasonable effort, file anyway with what you have. Document your attempts to get the ID in case the IRS asks.

Frequently Asked Questions

Can I claim the credit if I use a dependent care account at work?

Yes, but you must reduce the expenses you claim by the amount you put into the account. If you spent $5,000 on childcare and contributed $2,500 to a dependent care account, you claim the credit on $2,500 of expenses. You cannot claim the credit on the same money twice.

What if my spouse stayed home and didn't work?

If you are married and filing jointly, both spouses must have earned income to claim the credit. If one spouse had no income, you cannot claim it. If you are filing separately, only the spouse who paid for childcare and had earned income can claim it.

Do I have to claim this credit, or can I skip it?

You do not have to claim it. Some people skip it because the credit is small compared to their tax bill, or because they do not want to report the childcare provider's information to the IRS. The choice is yours.

Can I claim expenses for care during the summer if my child is in school during the year?

Yes. You can claim summer camp and summer childcare expenses as long as the care was for a child under 13 and you paid for it so you could work. The child does not have to be in school during the year for you to claim summer expenses.

What if I got divorced or separated during the year?

Your filing status on December 31 determines whether you can claim the credit. If you were divorced or separated by that date, you file as single or head of household, and only one parent can claim the credit. The parent who had custody of the child for more than half the year is usually the one who claims it, but you and your ex can agree otherwise.