Child and dependent care credit

The child and dependent care credit is designed to help ease the tax burden of persons who must work and who also have the responsibility for the care of children or disabled dependents and spouses. Use Form 2441 (24-41) to claim the child and dependent care credit or Schedule 2, Form 1040A (10-40-A). To determine your amount of credit, you multiply your work-related expenses by a percentage, which depends on your adjusted gross income shown on line 34 of Form 1040 or line 19 of Form 1040A. To claim the credit, you must pay someone to care for a qualifying individual so that you can work or look for work. You must have maintained a home for yourself and the qualifying individual. You must also have earned income from your work during the year. If you pay someone to care for your dependent under 13 years of age, or for your spouse or dependent who is unable to care for himself or herself, you may be able to claim the credit. Up to 30 percent of your expenses can be claimed. There are several other specific tests you must meet to be able to claim the credit. These tips are provided to give you general information about your taxes. If you have specific questions, please consult a tax advisor or call the toll-free number for Federal Tax Information and Assistance at 1-800-829-1040.