Skip to main content
April 11, 2025
Question

Child care expense seems wrong. We should be qualified for child care expense credit, but the system says we dont.

  • April 11, 2025
  • 1 reply
  • 0 views
No text available

    1 reply

    DaveF1006
    April 11, 2025

    The Child and Dependent Care Credit helps cover expenses for child care so you (and your spouse, if filing jointly) can work or look for work. Here are the key requirements:

     

    1. You must have earned income (wages or self-employment income).
    2. The care must be for a qualifying person (a child under 13 or a dependent/spouse unable to care for themselves).
    3. The care must be work-related—meaning it allows you to work or seek employment.
    4. You must provide the care provider’s information (name, address, and taxpayer identification number).
    5. If married, you must file jointly (unless you meet special exceptions).

    The amount of credit you can claim depends on your adjusted gross income (AGI).

     

    1. The credit covers up to 35% of eligible expenses for lower-income taxpayers. 
    2. As income increases, the percentage gradually decreases until it is phased out at $438,000.

     

    **Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"