How to Claim the Child & Dependent Care Credit
Life with kids is full. Taxes shouldn’t make it harder. This friendly guide explains how the Child & Dependent Care Credit works, who qualifies, which childcare expenses qualify for the tax credit, and how to file without guesswork. Use this alongside our Estimator to preview your potential credit before you file.
What the credit does (in 15 seconds)
The Child & Dependent Care Credit helps offset a portion of what you paid for care so you (and your spouse, if filing jointly) could work, look for work, or attend school. It’s a nonrefundable credit based on eligible expenses for qualifying dependents.
Do you qualify?
- You paid for care so you could work, look for work, or go to school.
- Your dependent was under 13 (or any age if they cannot care for themselves).
- You can identify the care provider (name, address, and SSN/EIN).
- You have earned income (special rules apply for students or disabled spouses).
Which expenses count?
Eligible expenses include daycare, preschool (not kindergarten tuition), before/after-school programs, day camps, and in-home care such as a nanny or babysitter (when properly reported). Transportation that is provided by the care provider may count; payments to relatives might be allowed with restrictions.
How much can you claim?
You can generally apply the credit rate to up to a set maximum of qualifying expenses per dependent (with an overall family cap). Use our Estimator to preview your likely credit amount and rate based on your income and expenses.
What to gather before filing
- Total childcare expenses for each qualifying person.
- Care provider details (name, address, SSN/EIN).
- Your earned income and spouse’s earned income (if filing jointly).
- Any dependent care benefits from your employer (shown on your W-2).
Step-by-step filing roadmap
- Use the Estimator to get a projection of your credit.
- Confirm which expenses qualify (see our FAQ and benefits overview).
- Collect provider information and totals paid by person.
- Enter your figures in your tax software, checking for dependent care benefits.
- Review your return carefully for names, IDs, and amounts.
Common “gotchas”
- Missing provider ID: You need the provider’s SSN/EIN.
- Counting kindergarten tuition: K-12 tuition isn’t eligible; preschool typically is.
- Double-counting with FSA: If you used a dependent care FSA, coordinate limits.
Next: Avoid easy errors with our Common Childcare Tax Mistakes, then check possible state programs.