Child and Dependent Care Tax Credit

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

Qualifying Person
- A child under the age of 13 whom you can claim as a dependent is a qualifying person.  If the child turned 13 this year, then the child would be a qualifying person for the part of the year that he was under 13.
- Your disabled spouse who was not physically or mentally able to care for himself.
- Any physically or mentally disabled person who was not able to care for himself or herself, whom you can claim as a dependent (or could claim as a dependent with certain exceptions).

Dependent Care Benefits
Dependent care benefits include:
-Amounts your employer paid directly to either you or your care provider for the care of your qualifying person(s) while you worked,
- The fair market value of care in a daycare facility provided or sponsored by your employer, and
- Pre-tax contributions you made under a dependent care flexible spending arrangement (FSA).
There is a maximum on the qualified expenses of two or more qualifying persons of $6,000.  This amount does not need to be split equally.

Who can take the Credit or Exclusion:

You can take the credit or the exclusion if all five of the following apply:

1. Your filing status may be single, head of household, qualifying widow(er) with dependent child, or married filing jointly. If your filing status is married filing separately, see Married Persons Filing Separately, later.

2. The care was provided so you (and your spouse if filing jointly) could work or look for work. However, if you did not find a job and have no earned income for the year, you cannot take the credit or the exclusion. But if you or your spouse was a full-time student or disabled, see the

instructions for lines 4 and 5, later.

3. The care must be for one or more qualifying persons.

4. The person who provided the care was not your spouse, the parent of your qualifying child, or a person whom you can claim as a dependent. If your child provided the care, he or she must have been age 19 or older by the end of 2015, and he or she cannot be your dependent. 

5. You report the required information about the care provider on line 1 and, if taking the credit, the information about the qualifying person on line 2.

Note that there is a maximum on the qualified expenses. For one person, the maximum qualified expenses is $3,000.  For two or more person(s), the maximum qualified expenses is $6,000.  The credit can be as much as 35% of the allowable expenses.  The percentage changes based on your income.  Lower income means a higher percentage of the allowable expenses, and higher income means a lower percentage of the allowable expenses.

You will need the Social Security Number of your qualifying person(s).  You will also need the Tax Identification Number or Social Security Number, name and address of the person who cared for your qualifying person and received the qualified expenses.