We have 3 kids and do not understand the child and dependent care credit. It is only giving us $2200 total for all three children. Why would it be doing this?

[Hank-P · Accepted solution]

Here is some general information related to the child and dependent care credit:

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 s/he was a full-time student or
  • Disabled, if they lived with the other spouse for more than 6 months in 2017
• 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 s/he was a full-time student or
  • Disabled, if they lived with the other spouse for more than 6 months in 2017
• You paid a caregiver to care for a Qualifying Person. The caregiver cannot be:
  • Your spouse;
  • Your dependent;
  • Your child if they were under 19 on the last day of 2017, even if not your dependent; or
  • The parent of the Qualifying Person, if the Qualifying Person is your child under the age of 13 during 2017.
• You cannot file with the Married Filing Separately filing status
• 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 anywhere from 20% to 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.

Related Information:

• Who is a Qualifying Person for the Child and Dependent Care Credit?
• How do I get to the Child and Dependent Care Credit in TurboTax?
• Why do I have a child with no care expenses listed in the child care credit?