Solved: 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?
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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?

 
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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?

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.


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Highlighted
New Member

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?

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.


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