For families

Childcare you pay to work can cut your tax.

If you pay for childcare so you can work, the dependent care credit gives you part of it back as a direct cut in your tax.

Watch the quick version

See how it works through one simple example.

Is this you?

You pay for care for a child or dependent so you can work.
Both spouses generally need to be working or looking for work.

Here is the idea, in plain words

The credit is a percentage of the care costs you pay, up to a limit.

It is a credit, so it lowers your tax directly.

Coordinate it with a dependent-care FSA so you do not double up.

What this could be worth

Worth a percentage of your childcare costs back as a direct credit on your tax.
  • 1Track what you pay for qualifying care.
  • 2Make sure both spouses are working or job hunting.
  • 3Coordinate with any dependent-care FSA, then claim the credit.

Educational guidance, not tax advice. We confirm every figure and your eligibility before you act.

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What to watch out for

The honest version.

  • A dependent-care FSA and this credit cannot cover the same dollars.
  • Both spouses generally must have earned income.
  • There are limits on the costs that count.

Common questions

What care counts?

Daycare, after-school care, and similar so you can work.

FSA or credit?

Often the FSA first, then the credit on remaining costs. We optimize this.

What ages qualify?

Young children, and some older dependents who cannot care for themselves.

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