Feature Articles: Taxes
Claiming the Child and Dependent Care Credit
Reviewed and adapted with special permission from the IRS by: Andrew Zumwalt, Associate State Specialist, Personal Financial Planning, University of Missouri Extension
If you paid someone to care for a child under age 13 or a qualifying
spouse or dependent so you could work or look for work, you may
be able to reduce your tax by claiming the Child and Dependent Care
Credit on your federal income tax return. To qualify, your spouse,
children over the age of 13, and other dependents must be physically
or mentally incapable of self-care.
The credit is a percentage of the amount of work-related child
and dependent care expenses you paid to a care provider. The credit
can range from 20% to 35% of your qualifying expenses, depending
upon your income.
For 2011, you may use up to $3,000 of the expenses paid in a
year for one qualifying individual, or $6,000 for two or more qualifying
individuals. These dollar limits must be reduced by the amount of
any dependent care benefits provided by your employer that you exclude
from your income.
To claim the credit for child and dependent care expenses, you
must meet the following conditions:
- Income: You must have earned income from wages, salaries,
tips or other taxable employee compensation, or net earnings
from self-employment
- Payee: The payments for care cannot be paid to someone
you can claim as your dependent on your return or to your child
who is under age 19, even if they are not your dependents
- Filing Status: Your filing status must be single,
married filing jointly, head of household, or qualifying widow(er)
with a dependent child
- Care: The care must have been provided for one or
more qualifying persons
- Home: The qualifying person must have lived with
you for more than half of 2011
There are some limitations on the amount of credit you can claim.
If you received dependent care benefits from your employer, other
rules apply.
For more information on the Child and Dependent Care Credit,
see Publication 503, Child and Dependent Care Expenses. You may
download these free publications from
IRS.gov or order them by calling
800-TAX-FORM (800-829-3676).
Resources/Forms:
- Publication 503, Child and Dependent Care Expenses (pdf)
- Form 2441, Child and Dependent Care Expenses (pdf)
- Form 2441 Instructions (pdf)
- Publication 17, Your Federal Income Tax (pdf)
- Tax Topic 602
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Last update: Friday, February 24, 2012
