The Child and Dependent Care Credit (not to be confused with the similar-sounding Child Tax Credit) can reduce your tax bill if you paid for a dependent's care so that you could work or look for work.
To qualify for this credit, you must meet all of these criteria:
- You (and your spouse, if filing jointly) must have earned income
- The earned income requirement for one spouse is waived if they were a full-time student or disabled (if they lived with your spouse for more than 6 months in 2021)
- You paid caregiving expenses so that you (and your spouse, if filing jointly) could work or look for work
- The work/look for work requirement for one spouse is waived if they were a full-time student or disabled (if they lived with the other spouse for more than 6 months in 2021)
- You paid a caregiver to care for a Qualifying Person. The caregiver can't be:
- Your spouse
- Your dependent
- Your child if they were under 19 on the last day of 2021, even if not your dependent
- The parent of the Qualifying Person, if the Qualifying Person is your child under the age of 13 during 2021
- You can't file with the Married Filing Separately filing status (except under certain circumstances)
- You must furnish the care provider's name, address, and (unless it's a tax-exempt organization) their SSN, ITIN, or EIN on your return
The credit is worth as much as 50% of your qualified expenses, up to $8,000, (for one qualifying person), and $16,000 (for two or more qualifying persons). Your percentage depends on your AGI, with the higher percentages applying to lower incomes and vice-versa. As an example, a married couple supporting two qualifying persons who paid $16,000 in qualified expenses may qualify for up to $8,000 in credits, depending on their AGI. TurboTax will determine your eligibility and calculate the maximum credit allowed.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
