What is the Child and Dependent Care Credit?
The Child and Dependent Care Credit is a tax credit that helps families cover expenses for child care needed to work, or to look for work. The credit is also available to families that must pay for the care of a spouse or other adult relative who isn't mentally or physically able to care for themselves. Families can claim up to $4,000 for one child/dependent or $8,000 for two or more children/dependents. For most families, the credit covers half the cost of child care. For example, if you paid $3,000 in child care costs for one child, you could claim $1,500. If you paid $20,000 in care costs for two children, you could claim $8,000. You must report earned income during 2021 to claim the credit.