Form 2441 is the credit for child and dependent care expenses. You must have a qualifying child dependent, usually your own child under the age of 13 who lives with you more than half the year. You must pay for daycare so that you (and your spouse if married) can work. You must provide the name, address, and Social Security number or tax ID number of the daycare provider. You can claim up to $8000 of qualifying expenses per child, or up to $16,000 for two or more children, but only if you actually paid daycare expenses so that you could go to work. You would receive a credit of between 20% and 50% of your actual expenses, depending on your income. The credit percentage is a sliding scale that starts at 50% and is then reduced for higher income taxpayers. If you are using TurboTax, there is a section on the deductions and credits page to enter your daycare expenses and they will automatically be put on form 2441.
Note that this is an enhanced credit for tax year 2021 only. For 2022, the child and dependent care credit will return to its normal level which was up to 35% credit for up to $3000 of daycare expenses for one child or $6000 of daycare expenses for two or more children.
