Tax Trails - Can You Claim the Child and Dependent Care Credit?
The amount of the credit is a percentage of work-related expenses, subject to a dollar limit on the amount of work-related expenses that can be taken into account in computing the credit. The amount of any dependent care benefits you receive from an employer that are excludable from gross income reduce the dollar limit.
Was the amount of any excludable dependent care benefits you received greater than or equal to the applicable dollar limit on work-related expenses?
For the applicable percentages and dollar limits for the year, see Publication 503, Child and Dependent Care Expenses.