Child Care Credit or Reimbursement
This credit should not be confused with the Child Tax Credit.
Credit for child and dependent care expenses:
You may be able to claim the credit if you pay someone to care for your dependent
who is under age 13 or for your spouse or dependent who is not able to care
for himself or herself. The credit can be up to 35% of your expenses. To qualify,
you must pay these expenses so you can work or look for work.
Dependent care benefits. If you received any dependent care benefits
from your employer during the year, you may be able to exclude from your income
all or part of them. You must complete Part III of Form 2441 or Schedule 2 (Form
1040A) before you can figure the amount of your credit. See Employer-Provided
Tests To Claim the Credit
To be able to claim the credit for child and dependent care expenses, you must
file Form 1040 or Form 1040A, not Form 1040EZ, and meet all the following
1) The care must be for one or more qualifying persons who are identified on
the form you use to claim the credit.
2) You (and your spouse if you are married) must keep up a home that you live
in with the qualifying person or persons.
3) You (and your spouse if you are married) must have earned income during
the year. (However, check rule for student-spouse or spouse not able to care
for self )
4) You must pay child and dependent care expenses so you (and your spouse if
you are married) can work or look for work.
5) You must make payments for child and dependent care to someone you (or your
spouse) cannot claim as a dependent. If you make payments to your child, he
or she cannot be your dependent and must be age 19 or older by the end of the
6) Your filing status must be single, head of household, qualifying widow(er)
with dependent child, or married filing jointly. You must file a joint return
if you are married, unless an exception applies to you.
7) You must identify the care provider on your tax return.
8) If you exclude dependent care benefits provided by your employer, the amount
you exclude must be less than the dollar limit for qualifying expenses (generally,
$3,000 if one qualifying person was cared for or $6,000 if two or more qualifying
persons were cared for).