If you paid someone to care for a dependent in your household within the tax year, while you either worked or sought employment, you may be eligible to claim the Child and Dependent Care Tax Credit.
You must meet certain requirements in order to claim this credit. You must have paid for dependent care while you worked, or looked for work. Married individuals must both meet this requirement. This doesn’t apply if your spouse is either disabled or a full time student.
You must have paid for care for a “qualifying person”, which can be a child under the age of 13, or your spouse or dependent living more than half-time with you and incapable of self-care. You’ll need to include the person’s social security number in order to claim the credit.
You are required to earn income throughout the tax year. Both spouses have to earn income if you are married. IF your employer offers some form of dependent care benefits, you are subject to additional rules and requirements.
The Child and Dependent Care credit is worth somewhere between 20 and 35% of your allowable expenses, depending on your income. You are limited to $3,000 worth of care expenses for one dependent, and up to $6,000 for two or more dependents.
You have to include the name and contact information, as well as the taxpayer identification number of the care provider on Form 2441, which is used to claim the credit. File this Form with your tax return.