The credit is a percentage, based on your adjusted gross income, of the amount of work-related child and dependent care expenses you paid to a care provider for a qualifying individual*. The maximum eligible to be multiplied by the percentages is $3,000 per child, maximum of $6,000. These dollar limits must be reduced by the amount of any dependent care benefits provided by your employer that you exclude from your income.
Note: While you may be able to take this credit if your spouse is looking for work or is a student, these circumstances are not supported. Both spouses must have worked in order to claim this credit.
*For purposes of the child and dependent care credit, a qualifying individual is:
- Your dependent qualifying child who is under age 13 when the care is provided,
- Your spouse who is physically or mentally incapable of self-care and who has the same principal place of abode as you for more than half of the year, or
- Your dependent who is physically or mentally incapable of self-care, and who has the same principal place of abode as you for more than half of the year. For this purpose, whether an individual is your dependent is determined without regard to the individual's gross income, whether the individual files a joint return, or whether you are a dependent of another taxpayer.
On the credits page of the federal return entries, select the Child and Dependent Care Expenses. Enter the care provider information and the amount paid then select the dependent(s) that amount applies. The OLT software will complete the calculations for the form 2441.