Child and Dependent Care Credit

[guarzola]

I paid approximately $11,000  for child care/nursery school in 2024.  The amount that Turbo tax calculated on the "Child  and dependent Care Credit" line was  $600.   Does that seem correct given that I  file jointly  and have a combined  income well below the $400K limit I noticed for this deduction?

[DawnC]

That would be correct if you have one qualifying child and are in the 20% level - See Dependent Care Credit.  You can look at Form 2441 to see how the credit was calculated.   

The Child and Dependent Care Credit is worth as much as 35% of your qualified expenses, up to $3,000, (for one qualifying person), and $6,000 (for two or more qualifying persons). Your percentage depends on your AGI, with the higher percentages applying to lower incomes and vice-versa.

[guarzola]

Thank you.   I way I originally interpreted the explanation provided in Turbotax was that max credit  amount  is 35 percent of your expense up to a maximum credit of $3000 for one person.  Based on your explanation, the max credit for one child is 35 percent of $3000 regardless of your expense.