Child and Dependent Care Tax Credit

The following is primarily summarized from IRS Publication 503 (2023): Child and Dependent Care Expenses (https://www.irs.gov/publications/p503) posted on the Internal Revenue Service (IRS) website.

WHAT IS THE CHILD AND DEPENDENT CARE CREDIT?
The Child and Dependent Care Credit is a tax credit for single individuals or married couples who have incurred child or dependent care expenses in caring for qualified children, dependents or spouses while working or looking for work. People who qualify for the credit are allowed up to $3,000 of care for one dependent or $6,000 of care expenses for two or more qualifying dependents. The credit can be up to 35% of your qualifying expenses depending upon your adjusted gross income; and along with Form 1040. The Child and Dependent Care Credit is a nonrefundable credit, which can reduce the amount of income taxes owed.

WHO IS ELIGIBLE FOR THE CHILD AND DEPENDENT CARE CREDIT?
To be eligible for the credit, single or married people:

Must have provided care for one or more qualifying persons
If care was provided at home, the qualifying person must have lived at the residence for more than half of the year
Cannot pay someone to provide care who is a child under age 19 or that they claim as a dependent
Must have earned income from wages or net earnings from self-employment
Must have work-related care expenses that are not higher than the yearly earned income of the tax filer, if single or the smaller amount of a couple’s earned incomes, if married
Must have a filing status as single, head of household, married filing jointly or qualifying widow/widower with a dependent child

Individuals who qualify to be claimed for the credit are:

Dependent children who were under age 13 when care was provided
Dependents who are physically or mentally incapable of caring for themselves and have lived at the tax filer’s principal residence for more than half of the year
Spouses who are physically or mentally incapable of caring for themselves and have lived at the tax filer’s principal residence for more than half of the year

For further information, see IRS Publication 503: Child and Dependent Care Expenses at the IRS website: 2023 Publication 503 (irs.gov)

FILING FOR A CHILD AND DEPENDENT CARE CREDIT
The Child and Dependent Care credit can be claimed by filing Form 1040.

FORMS TO BRING TO A TAX ASSISTANCE SITE
When visiting a Connecticut Tax-Aide Assistance or VITA (Volunteer Income Tax Assistance) site, bring the following:

If you would like to direct deposit, please bring a voided check from your checking account or the account and routing number for your savings account (REMINDER: The IRS will no longer issue paper checks, so you MUST bring your account information. If you have a Chime card, Venmo, or Cashapp account, you must bring in routing and account number for those. Card number is not valid account information, for your Federal refund.). Those filing for the very first time, will only be able to receive a check from the State of CT
Photo ID for you and/or spouse if filing jointly
Social Security Cards or ITIN Letters for every member of your family listed on the return (if you do not have a card for every member of your family – you must contact the social security administration to replace card prior to having taxes prepared)
Printed W-2s and/or 1099’s from ALL of your jobs worked in 2024
Health Insurance Documents – If you signed-up for health insurance through the CT Marketplace, you must bring all tax documents that you receive from the Marketplace (if you received from 1095A it is REQUIRED to complete your tax return)
Unemployment Compensation – Form 1099G
If self-employed, any related business expenses
Interest/Dividend statements from your financial institutions (if applicable)-forms #1099 INT, 1099DIV
Tuition and student loan information (if applicable) form 1098T or 1098E
Documentation from your daycare provider (their SSN or EIN) if you paid for child care in 2024
If you own a home, your annual mortgage interest statement.
A record of any taxes paid to the town (property taxes, automobile, etc.)
Any other income information or IRS notices that you received
Copy of your last year’s tax return

TO FIND PROVIDERS IN CONNECTICUT’S COMMUNITY RESOURCES DATABASE:

Search by service name: Federal Child and Dependent Care Tax Credit Information

—————-

SOURCES: 211 database; Tax Topic: Child and Dependent Care Credit posted on the Internal Revenue Service website
INTERNET PAGE PREPARED BY: 211/tb
CONTENT LAST REVIEWED: December2025