Yes, you can claim the Child Care Credit based on the $3000 you spent.
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 your spouse for more than 6 months in 2020).
- 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 2020).
- 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 2020, even if not your dependent
- The parent of the Qualifying Person, if the Qualifying Person is your child under the age of 13 during 2020
- 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 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.
TurboTax will determine your eligibility and calculate the maximum credit allowed.
