Anonymous
Not applicable

Deductions & credits

with only 1 child in daycare,  and your adjusted gross income above $43,000 the credit rate is 20% and the maximum credit is $3,000. The maximum credit is determined by multiply the lower of your earned income or hers by 20%, so each of you would need $15,000 in earned income (wages, net schedule c income,  se income from partnerships).

 

there is a further limit to tax liability before this credit.

this assumes your employer is mot providing and dependent care benefits

you should review form 2441 where the credit is computed. 

 

https://www.irs.gov/pub/irs-pdf/f2441.pdf