You may be eligible for a tax credit if you are responsible for expenses related to the care of a child under the age of 13, or a dependent or spouse who is mentally or physically unable to care for themselves. This tax credit is for any costs you incur in relation to their care while you work or attend school. The credit is worth up to $3,000 for one child/dependent, while two or greater extend the credit to $6,000. The minimum credit is 35% of your qualifying expenses, and are calculated on Form 2441. Your qualifying expenses can’t be more than your wages earned at work.

If your employer offers day care services or reimbursement for similar expenses, you are able to exclude up to $5,000 each year from your income. You have to abide by the aforementioned qualifications regarding dependent eligibility and credit amounts. Child care expenses which were repaid to you cannot be claimed via the credit. Additionally, you won’t qualify for the credit if you pay out of pocket after reimbursements which exceed the maximum credit amount of $3,000/$6,000 are paid.

You need to file Form 2441 with your tax return if you are eligible to claim the credit for child and dependent care. You will be required to provide the name, contact information, and Social Security number (or Employer Identification number if you use a commercial child care center) of every provider, along with the amount paid.