Child and Dependent Care Tax Credit (CDCTC)

Federal tax credit for expenses paid for the care of a qualifying child under age 13 or a disabled spouse or dependent of any age, to enable the taxpayer to work or look for work. Credit ranges from 20% to 35% of qualifying expenses based on adjusted gross income.

Tax credit for work-related care expenses. Up to $3,000 in qualifying expenses for one dependent, or $6,000 for two or more dependents. Credit rate ranges from 20% to 35% of expenses based on AGI (35% for AGI up to $15,000, decreasing by 1% per $2,000 AGI to 20% for AGI over $43,000). Maximum credit: $1,050 for one qualifying person or $2,100 for two or more (at 35% rate). Non-refundable for tax year 2025. Qualifying persons include children under 13, disabled spouse, or disabled dependent of any age who is incapable of self-care. If spouse is full-time student or disabled, deemed earned income of $250/month (one qualifying person) or $500/month (two or more). Dependent care FSA benefits (max $5,000) reduce dollar limit for credit. Must file jointly if married (exceptions for legally separated or living apart last 6 months). Care provider cannot be spouse, parent of qualifying child under 13, or claimed dependent. Claimed via Form 2441.

Some details for this program are still being verified. Check the official source for the most current information.

Eligibility

• Care recipient must be 12 years old or younger
• Must have earned income

Services

Tax credit for work-related care expenses. Up to $3,000 in qualifying expenses for one dependent, or $6,000 for two or more dependents. Credit rate ranges from 20% to 35% of expenses based on AGI (35% for AGI up to $15,000, decreasing by 1% per $2,000 AGI to 20% for AGI over $43,000). Maximum credit: $1,050 for one qualifying person or $2,100 for two or more (at 35% rate). Non-refundable for tax year 2025. Qualifying persons include children under 13, disabled spouse, or disabled dependent of any age who is incapable of self-care. If spouse is full-time student or disabled, deemed earned income of $250/month (one qualifying person) or $500/month (two or more). Dependent care FSA benefits (max $5,000) reduce dollar limit for credit. Must file jointly if married (exceptions for legally separated or living apart last 6 months). Care provider cannot be spouse, parent of qualifying child under 13, or claimed dependent. Claimed via Form 2441.

How to apply

Apply online or find more information at the official program page.