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 $3,000 for one child/dependent or $6,000 for two or more children/dependents.The credit covers 20 to 35% of the cost of child care. The percentage is based on your earned income and Adjusted Gross Income (if married filing jointly your spouse must also be working to meet the requirements). You must report earned income during 2022 to claim the credit.
Please note, the amounts for this credit have reverted back to their original amounts for 2022.