I spent 11,000 on childcare but the Child and Dependent Care Credit only added up to $600, this number seems off like it should be at least 1,000

Forum|Forum|2 years ago
January 27, 2024
1 reply
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Even at the low end of 20% it would add up to $2,200

TurboTax Deluxe Online

Best answer by Critter-3

So just to confirm, with one child having paid $11,473 in 2023 for daycare, the max I could get is $600 because the 20% is based on the $3,000 instead of the $11,473? Essentially anything you pay over $3,000 for the year gives you no additional tax benefits? If so, is there a way that my spouse could claim any of the remaining $8,473 that was paid for childcare last year?

So just to confirm, with one child having paid $11,473 in 2023 for daycare, the max I could get is $600 because the 20% is based on the $3,000 instead of the $11,473? YES

Essentially anything you pay over $3,000 for the year gives you no additional tax benefits? CORRECT

If so, is there a way that my spouse could claim any of the remaining $8,473 that was paid for childcare last year? NO ... only the person claiming the child can claim the credit on their return and if you are married filing separately neither of you can get the form 2441 credit at all.

AmyC

Employee

Yes, 20% of $11,000 is $2,200 but you are being limited. Childcare is based on the max allowed vs amount spent. Do you have dependent care benefits from work that paid part of the amount? Did you have a spouse in school so the credit is limited by their $250/month student wage credit? Take a look at the form and see where the numbers are being limited. When you look at the form, you will see the limitation between amount paid and allowable amount.

See:

How do I preview my TurboTax Online return before filing?

What is the Child and Dependent Care Credit?

{Edited 1/26/2024| 4:55 PST]

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ohlsenmichael-yaAuthor

I paid out of pocket on my own with no employer contribution and I am not married yet with my spouse claiming nothing for the child

Critter-3

The max credit you could get on the form 2441 for 2023 is 20% of $3000 or $6000 if you have more than 1 qualifying child... thus 3000 x 20% = $600 ... the program is calculating the credit correctly ... review form 2441 carefully.