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Level 1
posted Apr 3, 2024 11:12:35 AM

Why did I receive a child care tax credit of $600

I paid for than $18K for child care in 2023, however on my return it only shows as a tax credit of $600. Why is it less ?

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1 Best answer
Expert Alumni
Apr 3, 2024 11:17:42 AM

How many qualifying children do you have?   The limit of expenses that can be claimed is $3k for one child and $6k for 2 children.   And the amount of the credit is between 20 and 35% of the amount, dependent upon your income.    If you have 1 child, and you are in the 20% range, then your credit would be $600 ($3k * .20).    You can look at Form 2441 to see how it was calculated.  

 

Dependent Care Credit

1 Replies
Expert Alumni
Apr 3, 2024 11:17:42 AM

How many qualifying children do you have?   The limit of expenses that can be claimed is $3k for one child and $6k for 2 children.   And the amount of the credit is between 20 and 35% of the amount, dependent upon your income.    If you have 1 child, and you are in the 20% range, then your credit would be $600 ($3k * .20).    You can look at Form 2441 to see how it was calculated.  

 

Dependent Care Credit