Child and Dependent Care Credit: The Basics
Published November 4, 2026
If you pay someone to care for your child so you can work, you may be able to claim the child and dependent care credit. You claim it on Form 2441. This guide covers the rules for tax year 2026, which you file in 2027. IRS: Child and Dependent Care Credit information
Who is a qualifying person
The care must be for a qualifying person. In general, that is:
- a dependent under age 13 when the care was given, or
- a spouse or dependent of any age who cannot care for themselves and who lived with you for more than half the year.
The IRS also says the care provider cannot be your spouse, your dependent, your child under age 19, or the parent of your child under 13. IRS: Publication 503
Work-related expenses
The care must let you work, or look for work, and so must your spouse if you file jointly. The expenses you can use may not be more than the smaller of your earned income or your spouse's earned income. Special rules apply if a spouse is a full-time student or cannot care for themselves. IRS: Topic 602
Day care, before- and after-school care, and day camp can count for a child under 13. Overnight camp and school tuition do not count. Neither do costs for food, lodging, clothing, education, or entertainment. IRS: Working Families Tax Cuts
Expense limits and the percentage for 2026
You can count up to $3,000 of expenses for one qualifying person, or up to $6,000 for two or more. These dollar limits did not change for 2026.
The percentage depends on your adjusted gross income (AGI). For 2026, the IRS says:
- AGI of $15,000 or less: 50%.
- As income rises, the percentage drops, down to 35%.
- Above $75,000 ($150,000 if married filing jointly), the percentage drops again.
- The percentage never falls below 20%.
Before 2026, the top rate was 35%. Under the 2026 rules, the largest credit for one qualifying person is $1,500 (50% of $3,000). For two or more, it is $3,000 (50% of $6,000). The credit is nonrefundable. It can lower your tax, but you do not get a refund for any part that is more than the tax you owe. IRS: Child and Dependent Care Credit information
The IRS page does not list every income step. The Form 2441 instructions have the exact table. IRS: Instructions for Form 2441
Employer dependent care FSA
Many employers offer a dependent care flexible spending account (FSA). Care benefits from your employer can be excluded from your income, up to a limit. For 2026, that limit is $7,500, or $3,750 if you are married and file separately. IRS: Child and Dependent Care Credit information
You cannot use the same expenses twice. Excluded benefits reduce the expenses you can use for the credit. This example uses round numbers and is not a calculation for your return. You have one child. You pay $5,000 for day care. Your FSA pays $2,000, and you exclude that amount from income. The credit base is now $3,000 minus $2,000, which is $1,000. At a 50% rate, the credit would be $500. If the FSA pays $3,000 or more for one child, the credit base is zero.
Provider TIN and Form W-10
On Form 2441, you must list each care provider's name, address, and taxpayer identification number (TIN). For a person, the TIN is usually a Social Security number. For a business or organization, it is usually an employer identification number (EIN). You must also give the TIN of each qualifying person. IRS: Publication 503
Form W-10 is a form a provider can fill out to give you this information. IRS: About Form W-10 If you do not give correct or complete information, the IRS may disallow the credit. IRS: Instructions for Form 2441
Checklist
- Confirm the qualifying person meets the age and living rules for 2026.
- Keep records: provider name, address, TIN, dates, and amounts paid.
- Ask each provider for Form W-10 or the same details.
- Check your employer's FSA before you count expenses.
- Attach Form 2441 to Form 1040, 1040-SR, or 1040-NR.
General information, not advice for your return.
Sources: IRS: Child and Dependent Care Credit information (https://www.irs.gov/credits-deductions/individuals/child-and-dependent-care-credit-information); IRS: Publication 503 (https://www.irs.gov/publications/p503); IRS: Topic 602 (https://www.irs.gov/taxtopics/tc602); IRS: Working Families Tax Cuts (https://www.irs.gov/newsroom/working-families-tax-cuts); IRS: Instructions for Form 2441 (https://www.irs.gov/instructions/i2441); IRS: About Form W-10 (https://www.irs.gov/forms-pubs/about-form-w-10) This is general information, not advice about your specific return.
