Deductions & credits

No, there is no income limitations.  But do you have your dependent listed correctly?    You have to have a birthday entered that reflects the eligible age and the child should show up as a dependent on Form 1040.   Not an ''Other Dependent'' but a qualifying child dependent, see below.  

There are several other tests you must meet to claim the credit:

• You (and your spouse, if you're married) must have "earned income," meaning money earned from a job. Non-work income, such as investment profits, doesn't count.
• You must have paid for the care so that you could work or look for work. Being a full-time student or a parent unable to care for themselves does count as "working" for the purposes of the credit, even if you don’t receive any income for it.
• If you are married, you must file a joint tax return.
• You must provide the name, address and Taxpayer Identification Number (TIN) of the person who provided the care. The taxpayer ID number is either a Social Security number (SSN) or an Employer Identification Number (EIN). Ask your care provider for the number.

For the purposes of the Child and Dependent Care Credit, a "Qualifying Person" is defined as one of the following:

• A child that was age 12 (or younger) for at least part of 2020 and who is also claimed as a dependent on your return. If the child turns 13 during the year, the child will qualify for the part of the year that they were under age 13
  • Exception: See special rules for divorced or separated parents, below
• Your spouse, if they're unable to care for themselves and lived in your home for at least 6 months during 2020
• Anybody who lived in your home for at least 6 months during 2020 and was unable to care for themselves, if they:
  • Are claimed as a dependent on your return, or
  • Could have been claimed as your dependent but weren't because their gross income was $4,300 or more, they filed a joint return, or you (or your jointly-filing spouse) could be claimed as a dependent on somebody else's 2020 return

TurboTax will figure out if the person(s) for whom you provided care meet these requirements.

The Ins and Outs of the Child and Dependent Care Tax Credit