How do I claim the Child and Dependent Care Credit in 2025?

The Child and Dependent Care Credit (CDCC) lets you offset a portion of what you pay for child care or adult dependent care so you can work or look for work. Here's how it works for tax year 2025:

Who qualifies?

You can claim the credit if:

• You paid for care for a qualifying person — a child under age 13 whom you claim as a dependent, or a spouse or dependent who is physically or mentally unable to care for themselves
• The care was needed so you (and your spouse, if married) could work or actively look for work
• You have earned income (wages, self-employment income) for the year

How much is the credit?

The credit is a percentage of your qualifying care expenses, up to a cap:

• Maximum qualifying expenses: $3,000 for one qualifying person; $6,000 for two or more
• The credit rate is 20%–35% of those expenses, depending on your income
• At higher income levels (AGI above $43,000), the rate is 20%, giving a maximum credit of $600 (one child) or $1,200 (two or more)
• At lower incomes, the rate can be as high as 35%, giving a maximum of $1,050 or $2,100

The CDCC is nonrefundable for 2025 — it can reduce your tax bill to zero but will not generate a refund.

What counts as qualifying care expenses?

Daycare centers, licensed preschools, after-school programs, nannies or au pairs, and summer day camps (not overnight camps) all qualify. You cannot count kindergarten tuition, overnight camp, or expenses paid with a Dependent Care FSA.

How to claim it:

Complete Form 2441 (Child and Dependent Care Expenses) and attach it to your Form 1040. You'll need the name, address, and taxpayer identification number (Social Security Number or EIN) of your care provider. If the provider refuses to give you their TIN, you can still claim the credit — list "refused" and attach a statement.

Interaction with Dependent Care FSA:

If your employer offers a Dependent Care FSA, contributions (up to $5,000 per household) are pre-tax and reduce the expenses you can claim on Form 2441. You cannot claim the credit on the same dollars excluded from income via an FSA.