Child and Dependent Care Tax Credit

March 23, 2015

If you paid someone to care for a person in your household last year so that you could work or look for work, you may qualify for the Child and Dependent Care Tax Credit.

If you paid someone to care for a person in your household last year so that you could work or look for work, you may qualify for the Child and Dependent Care Tax Credit.

Child care giverGenerally, to be eligible you must have paid someone to care for your children under age 13, or a dependent or a spouse who is physically or mentally incapable of self-care. You must also have earned income and, if married, your spouse must also have earned income.

The credit is worth between 20% and 35% of your allowable expenses depending upon the amount of your income.  Your allowable expenses are limited to $3,000 if you paid for the care of one qualifying person or up to $6,000 if you paid for the care of two or more.

You must include the name, address and taxpayer identification number of your care provider on your tax return.  Click here to read more information about this tax credit.