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Child and Dependent Care Credit information

 

If you paid someone to care for your child or other qualifying person so you (and your spouse if filing jointly) could work or look for work, you may be able to take the credit for child and dependent care expenses.

Your federal income tax may be reduced by claiming the credit for child and dependent care expenses on your tax return.

What’s new for tax year 2026

The Working Families Tax Cuts increased the Child and Dependent Care Credit beginning in tax year 2026. 

Eligible taxpayers may now claim a credit for up to 50% of qualifying child and dependent care expenses, up from 35% in previous years. The law also increased the income thresholds used to calculate the credit, which may allow more taxpayers to qualify for a larger credit.

For tax year 2026, the credit is worth:

  • Up to $1,500 for one qualifying person.
  • Up to $3,000 for two or more qualifying persons.

The actual credit amount depends on your adjusted gross income, qualifying care expenses and other tax rules. 

These changes apply to tax year 2026 federal income tax returns, generally filed in 2027. 

Who is eligible to claim the credit

You may be eligible if:

  • You (and your spouse if filing a joint return) have earned income.
  • You paid qualified expenses for the care of a qualifying individual to enable you (and your spouse, if filing a joint return) to work or actively look for work.
  • You identify the eligible care provider on your return.
  • Your filing status is single, head of household, qualifying surviving spouse, or married filing jointly unless an exception applies to you.

If you are legally separated or living apart from your spouse, visit Publication 503, Child and Dependent Care Expenses, to see if you meet the requirements to be considered unmarried for purposes of claiming the credit and what to do on Form 2441, Child and Dependent Care Expenses.

Expenses for care do not include amounts paid for food, lodging, clothing, education and entertainment.

Use the Interactive Tax Assistant to find out if you are eligible to claim the Child and Dependent Care Credit.

Who qualifies you for the credit

A qualifying person generally is a dependent under the age of 13, a disabled spouse or dependent of any age who is incapable of self-care and who lives with you for more than half of the year.

Who is an eligible care provider

A care provider can be an organization or person. The person cannot be:

  • Your (or your spouse if filing jointly) dependent
  • Your child (including stepchild or foster child) who was under age 19 at the end of the year, even if he or she isn't your dependent
  • Your spouse (any time during the year)
  • The parent of your qualifying person if your qualifying person is your child and under age 13.

You must identify the provider on your tax return. Enter the name, address, and employer identification number (EIN) or Social Security number (SSN) of the care provider on Form 2441, Child and Dependent Care Expenses, and attach it to your Form 1040, 1040-SR, or 1040-NR.

How is the credit calculated

For tax year 2026, the credit ranges from 20% to 50% of qualifying expenses, depending on your adjusted gross income.

You can use up to:

  • $3,000 in qualifying expenses for one qualifying person.
  • $6,000 in qualifying expenses for two or more qualifying persons.

The percentage used to calculate your credit depends on your adjusted gross income.

  • If your adjusted gross income is $15,000 or less, the percentage is 50%.
  • As your income increases above $15,000, the percentage gradually decreases to 35%.
  • If your income exceeds $75,000, or $150,000 if married filing jointly, the percentage gradually decreases again.
  • The percentage does not fall below 20%, regardless of income.

The credit is non-refundable. This means it can reduce the federal income tax you owe, but you cannot receive a refund for any part of the credit that exceeds your tax liability.

What if I receive dependent care benefits from my employer?

Beginning in tax year 2026, the Working Families Tax Cuts also increased the amount of dependent care assistance benefits that eligible employees can exclude from income.

The maximum exclusion increased from $5,000 to $7,500, or from $2,500 to $3,750 for married employees filing separately.

These benefits may include contributions to a dependent care flexible spending account through your employer.

You cannot use the same expenses to claim both the Child and Dependent Care Credit and the exclusion for employer-provided dependent care benefits. Excluded benefits generally reduce the amount of expenses you can use to calculate the credit.

How do I claim the credit

To claim the Child and Dependent Care Credit, complete Form 2441, Child and Dependent Care Expenses, and attach it to your federal income tax return.

You generally must provide the name, address and taxpayer identification number of each care provider.

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