Although a dollar of tax credit is worth more than a dollar excluded from income, the Child Care Tax Credit does not result in a dollar for dollar reduction in tax liability. In 2022, the Child Care and Dependent Care Tax Credit reverted to 35% of up to $3,000 in child care expenses for one child or $6,000 in child care expenses for two or more children, after a brief pandemic-related increase. As before, the percentage of child care expenses you are allowed to claim goes down as your income goes up.
