The total daycare expense the family spent in 2022 was $6,000. The daycare expense was for one child. The other child did not attend daycare. Does the family qualify for the $3,000 or $6,000 expense limit? Please explain.
If the child who did not go to daycare could have qualified for the credit, the limit for your expenses is $6,000. To qualify, both children have to be claimed as dependents on your tax return, and both have to be under 13 years old. You enter both children for the credit, and enter $0 as the amount paid for the one who did not go to daycare.
IRS Publication 503 says "The maximum amount of work-related expenses you can take into account for purposes of the [child care] credit is $6,000 if you have two or more qualifying persons even if you only incurred expenses for just one of them."
If the child who did not go to daycare could have qualified for the credit, the limit for your expenses is $6,000. To qualify, both children have to be claimed as dependents on your tax return, and both have to be under 13 years old. You enter both children for the credit, and enter $0 as the amount paid for the one who did not go to daycare.
IRS Publication 503 says "The maximum amount of work-related expenses you can take into account for purposes of the [child care] credit is $6,000 if you have two or more qualifying persons even if you only incurred expenses for just one of them."