Child and Dependent Care

What is the Child and Dependent Care Credit? 

Making sure your children are cared for while you work can be costly, which is why the Child and Dependent Care Credit (CDCC) is such a great tax credit for working parents. 

How much is the Child and Dependent Care Credit worth? 

The credit lets you recoup up to 50% of your qualifying expenses, if those expenses don’t exceed $3,000 for one qualifying person or $6,000 for two or more qualifying persons. 

Keep in mind that this only applies to unreimbursed child or dependent care expenses. If your employer pays for a dependent care benefit plan, your maximum credit is reduced by the amount you received. 

How much of the credit you qualify for takes some serious math to calculate, but no worries—we’ll do the work in the background when you file with 1040.com. 

Who qualifies for the CDCC? 

The credit applies not only to children, but also to some dependent adults and teens. For the purposes of this tax break, a qualifying person is: 

• Your qualifying child who is your dependent and who was under age 13 when the care was provided. 

• Your spouse who wasn't physically or mentally able to care for themselves and lived with you for more than half the year 

• A person who wasn't physically or mentally able to care for themselves, lived with you for more than half the year, and either: 

1. Was your dependent 

1. Would have been your dependent except that either: 

• He or she received gross income of $5,050 or more 

• He or she filed a joint return 

• You, or your spouse if filing jointly, could be claimed as a dependent on someone else's 2024 return 

For dependents who can’t care for themselves due to mental or physical reasons, there are additional requirements: 

• They live with you for more than half the year 

• They are your dependent 

• They would have been your dependent if one of the following hadn’t happened: 

• Their income required them to file a tax return 

• They filed a joint return with a spouse 

• You (or your spouse) could be claimed as a dependent on someone else’s return 

Are there requirements for the type of care provided? 

Yes—only certain types of care are covered by the CDCC: 

• The care must have been provided by someone other than you or your spouse so you and your spouse could work or look for work. 

• The care provider can’t be your spouse, a parent of a qualifying dependent, a dependent you claim or your child who is not at least 19 years old. 

Ready to file your taxes and claim the credit? File with 1040.com. 

Filing your taxes is your job—ours is making sure you get all the tax breaks you qualify for, including the Child and Dependent Care Credit. 

Feels good, doesn’t it? 

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