Who Qualifies?
To claim this credit, you must pay for the care of a "qualifying individual" so you can work or actively look for work. Generally, married couples must file jointly to claim the credit, but there are exceptions if you are living apart from your spouse under certain conditions. See Publication 503 for details.
So, who is a "qualifying individual"?
Your dependent child who was under age 13 when the care was provided.
Your spouse who is physically or mentally incapable of self-care and lived with you for more than half the year.
An individual who is physically or mentally incapable of self-care, lived with you for more than half the year, and either:
Was your dependent; or
Could have been your dependent except that he or she received gross income of $5,050 or more, or filed a joint return, or you (or your spouse, if filing jointly) could have been claimed as a dependent on another taxpayer's 2024 return.
An individual is "physically or mentally incapable of self-care" if they can't handle their hygiene or nutritional needs or require constant attention due to a mental or physical condition.
Special Situations
Divorced or Separated Parents: Even if the noncustodial parent claims a child as a dependent, the custodial parent may be able to treat the child as a qualifying individual for this credit. Check out Publication 503 for more info.
Part-Year Qualification: If someone only qualifies for part of the year, you can only include care expenses during that period.
Taxpayer Identification Number (TIN): Don't forget to include the TIN (usually a Social Security number) for each qualifying individual on your tax return.
What Expenses Count?
You can include expenses for care provided in or out of your home. But, the care must be primarily for the individual's well-being and protection.
There are limits to the amount of expenses you can claim. The total expenses can’t be more than $3,000 for one qualifying individual or $6,000 for two or more qualifying individuals.
If you receive dependent care benefits from your employer that you exclude from your income, you must subtract those benefits from these limits.
Also, the expenses you claim generally can't be more than your earned income or your spouse's earned income, whichever is less. However, if you or your spouse is a full-time student or incapable of self-care, you're treated as having earned income of $250 per month for one qualifying individual, or $500 per month for two or more.
Choosing a Care Provider
You'll need to provide the care provider's name, address, and TIN (Social Security number or Employer Identification Number) on your tax return. If the provider is a tax-exempt organization, you only need to include their name and address. Use Form W-10 to request this information from the care provider.
Keep in mind, you can't claim the credit for payments to:
Your spouse
The parent of your qualifying child (if your child is under age 13)
Your child who is under age 19
Someone you or your spouse can claim as a dependent
Note: If you pay someone to care for your dependent or spouse in your home, you may be a household employer. This means you might need to withhold and pay Social Security and Medicare taxes and pay federal unemployment tax.
Claiming the Credit
To claim the credit, complete Form 2441, Child and Dependent Care Expenses, and attach it to your Form 1040, 1040-SR, or 1040-NR. If you received dependent care benefits from your employer (shown on your Form W-2), you'll also need to complete Part III of Form 2441.