The expenses to care for your child who is under age 13 at the end of the year are shown below. The expense of the car directly related to the child care, and a cell phone provided to the care provider as well as the wage and any payroll taxes you pay for a Household Employee. Don't include
services of a chauffeur or gardener. The maximum expense that is allowed to be used for the credit is explained below.
Qualifying expenses for the child and dependent care credit:You may be aware that daycare fees qualify for the child and dependent care credit, but the IRS actually considers much more than just the cost of daycare for this credit. Qualifying expenses also include childcare provided by a babysitter or licensed dependent care center and the cost of a cook, housekeeper, maid, or cleaning person who provides care for the child or dependent.
Day camp or summer camp fees, even for camps centered around a sport or activity, qualify if the camp was selected to provide care while the parent or parents were at work. However, overnight camps do not qualify. Additional qualifying expenses include costs related to before- and after-school care for children under 13 and expenses related to a nurse, home care provider, or other care provider for a disabled dependent.
Keep in mind that expenses related to schooling, tutoring, or overnight camps are not qualifying expenses.
If you paid qualified expenses for the care of two
or more qualifying persons, the applicable dollar
limit is $6,000. This limit doesn't need to be
divided equally. For example, if you paid and incurred
$2,500 of qualified expenses for the care of one qualifying
person and $3,500 for the care of another qualifying
person, you can use the total, $6,000, to figure the credit. The maximum for one child is $3,000.
The amount of work-related expenses you use
to figure your credit can’t be more than:
1. Your earned income for the year if you're
single at the end of the year, or
2. The smaller of your or your spouse's
earned income for the year if you're married
at the end of the year.
To record your child care expenses in TurboTax use the steps here.
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Sign into your account and open your return by selecting the Take me to my return button.
In the search box, search for child care credit (if necessary, copy/paste from here). In your search results, select the "Jump to" link and we'll take you right there.
