A federal tax credit for qualifying care expenses paid so a taxpayer and spouse, if filing jointly, could work or look for work.
Taxpayer who paid work-related care expensesParent, guardian, or caregiver of a qualifying person
Entitlement facts
Benefit type
Tax credit. A credit claimed under tax law that can reduce eligible tax liability and may be refundable only when the governing rules say so. Taxonomy definition →
What it unlocks
A nonrefundable credit based on eligible expenses for care of a qualifying child or other dependent.
Who qualifies
Taxpayer who paid work-related care expenses; Parent, guardian, or caregiver of a qualifying person
Requirements
The taxpayer must have earned income, pay qualifying care expenses for an eligible person, and meet filing, provider-identification, and work-related expense rules. The credit amount depends on adjusted gross income and eligible expenses.
How to activate
Review the IRS eligibility rules and claim the credit with Form 2441 on a timely federal income tax return.
Cost basis
Subsidized or partially covered. A government, nonprofit, employer, insurer, scholarship, or other sponsor pays some or all eligible costs; the user's remaining amount depends on the award and program rules.
Cost and fees
No government fee to claim on a federal return. Care expenses are required, the credit may not cover them fully, and paid tax preparation may cost extra.
Geography
US
Personalization
Published eligibility is not described as individually targeted.
EVIDENCE / 1 SOURCE
Eligibility is conditional, not guaranteed.
Check the provider's final terms immediately before applying, depositing funds, spending, or changing a paid relationship.
Federal tax relief for qualifying expenses associated with adopting an eligible child, with special rules for children determined to have special needs.