Child Care Tax Credits for Parents

A childcare tax credit can help you get a better return or provide a reduction in taxes owed.

If you are paying for child care, you might be eligible for the child and dependent care credit. This credit provides a portion of your child care cost, which can reduce your tax bill by thousands of dollars.


Tax Credit 101

The child care credit is a tax break for working people paying for child care. The credit is designed to help offset the cost of child or dependent with disabilities care. There are two key benefits to the tax credit:

  1. This is a tax credit, not a tax deduction. A tax deduction reduces the amount of income that you must pay tax on, while a tax credit, reduces your taxes, dollar for dollar.

  2. There are no income thresholds with claiming the credit. The c credit does get smaller, as incomes are higher.

To qualify for the child and dependent care credit, you must have paid for care for one or more of the following:

  • A child 12 years or younger being claimed as a dependent in the applicable year,

  • If that person is unable to care for himself/herself, has lived in the home for a required period of time, during the applicable year.

  • Any other person claimed as a dependent on a return, if that person can't take care of himself/herself, has lived in the home for a required period of time, during the applicable year.

Tax Credit Resources

Detailed information can be found on federal child care tax credits for parents by contacting the Internal Revenue Service or clicking on the kinks below.

T.L.C. Child Enrichment provides parents timely and accurate year-end statements to support the tax credit need. We encourage your to consult a tax advisor, the IRS, and state officials to confirm your eligibility.

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