Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Credit for Child and Dependent Care Expenses

Summary and Exercises

Summary

The credit for child and dependent care expenses is a nonrefundable credit that allows taxpayers to reduce their tax liability by a percentage of their child and dependent care expenses.

The maximum expense amounts are $3,000 for one qualifying person and $6,000 for two or more qualifying persons.

The maximum credit rate is 35% of the taxpayer's expenses. A taxpayer must satisfy the five eligibility tests to qualify for the credit. The tests are the:

  • Qualifying person test
  • Earned income test
  • Work-related expense test
  • Joint return test
  • Provider identification test

The credit is calculated and reported on Form 2441.

Two children.