Child and Dependent Care Credit

Forum|Forum|1 year ago
February 4, 2025
1 reply
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I paid approximately $11,000 for child care/nursery school in 2024. The amount that Turbo tax calculated on the "Child and dependent Care Credit" line was $600. Does that seem correct given that I file jointly and have a combined income well below the $400K limit I noticed for this deduction?

DawnC

Employee

That would be correct if you have one qualifying child and are in the 20% level - See Dependent Care Credit. You can look at Form 2441 to see how the credit was calculated.

The Child and Dependent Care Credit is worth as much as 35% of your qualified expenses, up to $3,000, (for one qualifying person), and $6,000 (for two or more qualifying persons). Your percentage depends on your AGI, with the higher percentages applying to lower incomes and vice-versa.

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LidskiAuthor

Thank you. I way I originally interpreted the explanation provided in Turbotax was that max credit amount is 35 percent of your expense up to a maximum credit of $3000 for one person. Based on your explanation, the max credit for one child is 35 percent of $3000 regardless of your expense.