The Child and Dependent Care Credit or CDCC is a nonrefundable tax credit which can reduce your tax liability if you paid for childcare during the year. Use the tool below to determine if you are eligible for the credit. Once you have your answer, start your return on eFile.com and input your details - eFile helps you claim tax credits and deductions so you do not need to memorize which tax savings you qualify for.
CAREucator Tool Learn more about this tax credit
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Payment to a Dependent
Were your payments made to someone you or your spouse could claim as a dependent? Details
Payment To Spouse, Dependent
Were your payments made to your spouse or to the parent of your qualifying person who is your qualifying child and under age 13 as of December 31?
Details
Payment To Child Under 19
Were your payments made to your child who was under the age of 19 at the end of the year? Details
Joint Tax Return
Are you filing a joint return? Details
Considered Unmarried
Do you meet the requirements to be considered unmarried? Details
Care Provider Information
Do you know the care provider's name, address, and identifying number? Details
Details
Did you make a reasonable effort to get this information?
Qualifying Person Criteria
Did you have more than one qualifying person? Details
Dependent Care
Are you excluding or deducting at least $3,000 of dependent care benefits?
Yes, you can claim the Dependent Care Credit for this person, up to $3,000 for one individual or up to $6,000 for two. Maximum Tax Credit is $2,100.
No, you can not claim the Dependent Care Credit for this person.
Does this person qualify for the Child Tax Credit?
Find out
Is this person your Qualifying Child or Dependent and can they be claimed on your tax return?
Find out
Will this person qualify as your Qualifying Relative or Dependent and can be claimed on your tax return?
Find out
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This Child and Dependent Child Care Calculator—CAREucator—will let you know if you qualify for this non-refundable federal tax credit. If you paid someone to care for your child or dependent or another qualifying relative so you and/or your spouse could work, look for work, or go to school, then you may be able to claim the Child and Dependent Care Credit. Find out by launching the tool above..
Did you have earned income during the year?
How is the Child Care Tax Credit calculated?
Note: This tax credit is not the same as the Child Tax Credit. The CAREucator tool will guide you through the following criteria to determine if you qualify for the credit:
- A: Qualifying Person
- B: Earned Income
- C: Work-Related Expense
- D: Joint Return
- E: Care Provider Identification
Start the CAREucator above to find out if you qualify for this credit. Or, start a tax return now and get the answer free before you e-file your upcoming return(s), which are due on Tax Day, usually April 15and find out if you qualify for the Child and Dependent Care Credit. Or, use the current year tax estimator to find out the tax credit amount and how it will impact your tax return.
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FAQs
The child and dependent care credit is generally worth 20% to 35% of up to $3,000 (for one qualifying dependent) or $6,000 (for two or more qualifying dependents). This means that the maximum child and dependent care credit is $1,050 for one dependent or $2,100 for two or more dependents.
How do you calculate child and dependent care credit? ›
To claim the credit, you (and your spouse, if you're married) must have income earned from a job and you must have paid for the care so that you could work or look for work. You can claim from 20% to 35% of your care expenses up to a maximum of $3,000 for one person, or $6,000 for two or more people (tax year 2023).
How much is the Child Tax Credit for one dependent? ›
The maximum amount of CTC per qualifying child is $2,000. The refundable part of the credit, ACTC, is worth up to $1,600 for each qualifying child. A qualifying child must have a Social Security Number issued by the Social Security Administration before the due date of your tax return (including extensions).
How much credit do I get for each dependent? ›
Child Tax Credit and Additional Child Tax Credit: The child tax credit is up to $2,000 per qualifying child under age 17. For 2023, the Child Tax Credit is $3,600 for each qualifying child under the age of 6 and up to $3,000 for qualifying children ages 6 through 17.
What is the credit limit for child and dependent care expenses? ›
If you have 1 qualifying child or dependent, you can count up to $3,000 in work-related expenses for tax year 2023, even if you spent much more than that. For 2 or more qualifying dependents, the amount increases to $6,000—the maximum allowable amount of expenses regardless of how many dependents you have.
How do you calculate dependent amount? ›
If you have children under 17 years of age, multiply the number of children you have by $2,000. If, for example, you have three children under 17, enter $6,000 in the first blank. If you have other qualified dependents, you can multiply the number of them by $500.
Why is dependent care credit only 200? ›
It's how the credit is calculated.
The maximum amount of Child Care payments for which you can claim a deduction is $1000. If you are in the top income category of the credit, the percentage of credit on qualified expenses is 20%. $200 is 20% of $1000, so it appears you are receiving the max credit you can claim.
How much does a dependent reduce your taxes? ›
Key Takeaways. The Child Tax Credit can reduce your taxes by up to $2,000 per qualifying child age 16 or younger. If you do not owe taxes, up to $1,600 of the child tax credit may be refundable through the Additional Child Tax Credit for 2023.
What is the $3600 Child Tax Credit? ›
How has the Child Tax Credit changed over the years? The American Rescue Plan raised the maximum Child Tax Credit in 2021 to $3,600 per child for qualifying children under the age of 6 and to $3,000 per child for qualifying children ages 6 through 17.
How to calculate Child Tax Credit? ›
Calculating the amount of the Child Tax Credit requires a few key numbers. Take the number of children that qualify for the tax credit and multiply this by $2,000 to calculate the total potential credit.
The credit is a percentage of your expenses based on your AGI (the higher the income, the lower the percentage) You must provide the Social Security number for each child you are claiming, and the Social Security number or Tax ID for each care provider.
Can you claim both Child Tax Credit and dependent care credit? ›
The max CTC is $2K per dependent. That credit is different from the Child and Dependent Care Credit (CDCC) which is for childcare expenses. You can get both of those credits if you had childcare expenses for a qualifying child. The max CDCC is $2,100 (35% of $6K).
When should I stop claiming my child as a dependent? ›
Once your child reaches the age of 18, they are considered an adult in the eyes of the IRS. However, if they are still a full-time student, you can continue to claim them as a dependent until they turn 24. Once they are no longer a full-time student, you must stop claiming them.
How do I calculate my Child Tax Credit? ›
Calculating the amount of the Child Tax Credit requires a few key numbers. Take the number of children that qualify for the tax credit and multiply this by $2,000 to calculate the total potential credit.
What is the income limit for the dependent tax credit? ›
You qualify for the full amount of the 2023 Child Tax Credit for each qualifying child if you meet all eligibility factors and your annual income is not more than $200,000 ($400,000 if filing a joint return). Parents and guardians with higher incomes may be eligible to claim a partial credit.
Can you use both dependent care FSA and Child Tax Credit? ›
Can I use both the tax credit and the dependent daycare FSA? Maybe. While you cannot receive both tax benefits for the same expense, you may be able to claim both if your expenses exceed $5,000.
Who qualifies for the $500 other dependent credit? ›
The maximum credit amount is $500 for each dependent who meets certain conditions. This credit can be claimed for: Dependents of any age, including those who are age 18 or older. Dependents who have Social Security numbers or Individual Taxpayer Identification numbers.
