How to Qualify for a Child Care Credit

You may qualify to claim the child care credit if you pay someone to care for your dependent who is under age 13 or incapacitated. Claim the credit only if you file Form 1040 or Form 1040A and have earned income during the year. You must pay child care expenses so you, and your spouse if married, can work or look for work.

Difficulty: Moderately Easy

Instructions

1. Download Form 2441 Child and Dependent Care Expenses from the IRS website for use with Form 1040 (see Resources below).

2. Complete Part I which identifies the person or organization who provided the care and the amount paid.

3. Fill in the qualifying dependent information in Part II and the qualifying expenses in Column (c). Indicate earned income amounts on Lines 4 and 5. Enter your adjusted gross income on Line 7.

4. Compute your child care credit using the chart on the form.

5. Limit the child care credit claimed on Line 48 of Form 1040 to your tax liability minus any foreign tax credit claimed.

6. Use Part III of Form 2441 if you received dependent care benefits during the year.

7. Attach Form 2441 to your Form 1040 before filing your income tax return.

Tips & Warnings

• Use Schedule 2 of Form 1040A if you are filing that income tax return instead of Form 1040 to compute your allowable child care credit and report any dependent card benefits received from an employer. Attach it to the Form 1040A.
• Payments for child care cannot be made to someone you or your spouse claim as a dependent.

Resources

• Access Form 2441 from the IRS website.