You may get money back through the Child and Dependent Care Credit, but only if you paid for care so you could work
The Child and Dependent Care Credit is a tax credit that returns some of the money you spent on daycare, preschool, summer camp, or in-home care. You claim it on your federal tax return, and the IRS calculates how much you get back based on what you paid and your income. The credit covers care for children under 13 or disabled dependents of any age, as long as the care happened while you were working or looking for work.
This is not a refund you receive automatically. You have to report your childcare expenses on Form 2441 (Child and Dependent Care Expenses) and attach it to your tax return. The credit reduces the tax you owe, and if the credit is larger than your tax bill, you may get the difference back as a refund — but that depends on your total tax situation for the year.
Key Takeaways
- The Child and Dependent Care Credit returns between 20 and 35 percent of what you paid for childcare, depending on your income.
- You must have earned income (from a job or self-employment) in the year you claim the credit, and the care must have allowed you to work.
- You report expenses on Form 2441 and include it with your tax return; the IRS does not send a separate form or notice.
- The maximum expenses you can claim are $3,000 per year for one dependent or $6,000 for two or more dependents, though you may have paid more.
- If you used a dependent care account (FSA) through your employer, you cannot claim the same expenses again on your tax return.
Who can claim the Child and Dependent Care Credit
You must be the parent, legal guardian, or custodian of the child or dependent. You must also have earned income during the year — wages from a job, self-employment income, or taxable alimony. If you are married filing jointly, both spouses must have earned income, unless one spouse was a full-time student or unable to work.
The care must have been for a child under age 13, or for a spouse or dependent of any age who is physically or mentally unable to care for themselves. The person providing the care cannot be your spouse, your child under age 19, or someone you claim as a dependent on your return.
If you are divorced or separated, the parent with custody of the child for the majority of the year can claim the credit, even if the other parent claims the child as a dependent. You will need to coordinate with the other parent to avoid both claiming the same expenses.
What expenses count and what the credit is worth
Daycare centers, preschools, after-school programs, summer camps, and in-home babysitters all count. You can also claim expenses for a nanny, au pair, or housekeeper if part of their job is caring for your child. Overnight camps do not count, and neither do school tuition for kindergarten and above — even if the school provides before- or after-school care.
The maximum expenses you can claim are $3,000 per year if you have one dependent, or $6,000 if you have two or more. If you paid $5,000 for one child's daycare, you can only claim $3,000. The credit is worth 20 to 35 percent of the expenses you claim, depending on your adjusted gross income (AGI). The higher your income, the lower the percentage. At an AGI of $43,000 or more, the credit is worth 20 percent of expenses. Below $15,000, it is worth 35 percent.
| Adjusted Gross Income | Credit Percentage |
|---|---|
| $15,000 or less | 35% |
| $15,001 to $17,000 | 34% |
| $17,001 to $19,000 | 33% |
| $19,001 to $21,000 | 32% |
| $21,001 to $23,000 | 31% |
| $23,001 to $25,000 | 30% |
| $25,001 to $43,000 | 20–29% (decreases by 1% for each $2,000 increase) |
| $43,000 or more | 20% |
Example: If you earned $30,000 and paid $4,000 for daycare, you can claim $3,000 (the maximum). Your credit percentage is 24 percent, so your credit is $720. That $720 reduces your tax bill by $720.
How to claim the credit on your tax return
You will need the name, address, and tax ID (usually an Employer Identification Number, or EIN) of the person or organization that provided the care. If it is an individual babysitter, you need their Social Security number. If you do not have this information, contact the provider and ask for it before you file.
Fill out Form 2441 (Child and Dependent Care Expenses). List each provider, the amount you paid them, and their tax ID. Attach Form 2441 to your Form 1040 (your main tax return). If you file electronically, your tax software will walk you through the form and attach it automatically. If you file by mail, print Form 2441, fill it out by hand or type it, and include it in your envelope with your return.
You do not need receipts to file, but keep them for your records in case the IRS asks questions later. The IRS may contact you to verify the provider's information or the amounts you claimed.
Dependent Care Accounts (FSAs) and how they affect your refund
Many employers offer a Dependent Care Flexible Spending Account (FSA), which lets you set aside pre-tax money for childcare expenses. If you use a dependent care FSA, you cannot claim the same expenses on your tax return. You have to choose one or the other.
If you set aside $3,000 in a dependent care FSA and used all of it, you cannot claim any childcare expenses on Form 2441. If you set aside $3,000 but only used $2,000, you can claim up to $1,000 on your return (the difference between what you set aside and what you actually used).
Dependent care FSAs have a "use it or lose it" rule: money you do not spend by the end of the year (or the grace period, if your plan has one) goes back to your employer. Some plans allow a carryover of up to $550 into the next year. Check your plan documents to see what your employer offers.
When you get the refund and how it arrives
The refund does not come separately. The credit reduces your total tax bill for the year. If the credit is larger than the tax you owe, you get the difference back as part of your overall tax refund. If you are owed a refund, it arrives by direct deposit (usually 5 to 21 days after the IRS accepts your return) or by check (usually 2 to 4 weeks). If you owe taxes, the credit reduces what you owe.
You can track your refund using the IRS "Where's My Refund?" tool on IRS.gov. Enter your Social Security number, filing status, and the exact refund amount from your return. The tool updates once per day and tells you whether the IRS has received your return, is processing it, or has issued your refund.
What to do if you did not claim the credit in a previous year
You can file an amended return to claim the credit for up to three years back. Use Form 1040-X (Amended U.S. Individual Income Tax Return) for each year you want to claim. List the childcare expenses and the credit on Form 1040-X, attach Form 2441, and mail it to the IRS address for your state (listed in the Form 1040-X instructions).
Amended returns take longer to process — usually 8 to 12 weeks. The IRS will send you a notice if they approve the amendment and issue a refund, or if they need more information. Keep copies of everything you send.
Frequently Asked Questions
Can I claim the credit if I am self-employed?
Yes, as long as you have net self-employment income for the year. Your childcare expenses must have allowed you to work or look for work. You report your self-employment income on Schedule C, and then claim the childcare credit on Form 2441 using your adjusted gross income from your return.
What if my spouse stayed home and did not work?
Only the spouse with earned income can claim the credit. If one spouse worked and the other stayed home, only the working spouse can report the childcare expenses. If both spouses worked, you can both claim expenses, but the total cannot exceed $3,000 (one child) or $6,000 (two or more children) combined.
Does the credit cover my child's school tuition?
No. Tuition for kindergarten and above does not count, even if the school provides before- or after-school care. You can claim the cost of before- or after-school programs or summer camps separately, but not the tuition itself. Preschool tuition does count because preschool is not compulsory education.
What if the daycare provider will not give me their tax ID?
Ask them directly and explain that you need it for your tax return. If they still refuse, contact the IRS at 1-800-829-1040 and ask what to do. You can file your return without the tax ID, but the IRS may contact you later to verify the information. Providing a false tax ID is illegal, so do not guess or make one up.
Can I claim the credit if I am not the child's biological parent?
Yes, if you are the legal guardian or custodian and the child lives with you. You must claim the child as a dependent on your return (or meet the requirements to claim them). Grandparents, aunts, uncles, and other relatives can claim the credit if they meet these conditions.