This article was published by the IRS.

daycareChildcare or adult dependent care can be a major expense. Fortunately, the child and dependent care credit can provide some relief. Taxpayers who pay for daycare expenses may be eligible to claim up to 35% of what they spend; limits apply.

For the purposes of this credit, the IRS defines a qualifying person as:

  • A taxpayer’s dependent who is under age 13 when the care is provided.
  • A taxpayer’s spouse who is physically or mentally unable to care for themselves and lived with the taxpayer for more than half the year.
  • Someone who’s physically or mentally unable to take care of themselves and lived with the taxpayer for six months and either:
  1. The qualifying person was the taxpayer’s dependent or
  2. They would have been the taxpayer’s dependent except for one of the following:
    • The qualifying person received gross income of $4,200 or more
    • The qualifying person filed a joint return
    • The taxpayer or spouse, if filing jointly, could be claimed as a dependent on someone else’s return

Taxpayers can use the Interactive Tax Assistant on to determine if they can claim this credit.