Issue Number: Tax Tip 2020-68
Here’s who qualifies a taxpayer for the child and dependent care credit
Childcare or adult dependent care can be a major expense. Fortunately, the child and dependent care credit can provide some relief. Taxpayers who pay for daycare expenses may be eligible to claim up to 35% of what they spend; limits apply.
For the purposes of this credit, the IRS defines a qualifying person as:
• A taxpayer’s dependent who is under age 13 when the care is provided.
• A taxpayer’s spouse who is physically or mentally unable to care for themselves and lived with the taxpayer for more than half the year.
• Someone who’s physically or mentally unable to take care of themselves and lived with the taxpayer for six months and either:
a) The qualifying person was the taxpayer’s dependent or
b) They would have been the taxpayer’s dependent except for one of the following:
• The qualifying person received gross income of $4,200 or more
• The qualifying person filed a joint return
• The taxpayer or spouse, if filing jointly, could be claimed as a dependent on someone else’s return
Taxpayers can use the Interactive Tax Assistant on IRS.gov to determine if they can claim this credit.
More information:
Child and Dependent Care Credit
Publication 503, Child and Dependent Care Expenses
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