IRS Tax Tip 2020-68, June 10, 2020

Childcare or adult dependent care can be a major expense. Fortunately, the child and dependent care credit can provide some relief. Taxpayers who pay for daycare expenses may be eligible to claim up to 35% of what they spend; limits apply.

For the purposes of this credit, the IRS defines a qualifying person as:

  • A taxpayer’s dependent who is under age 13 when the care is provided.
  • A taxpayer’s spouse who is physically or mentally unable to care for themselves and lived with the taxpayer for more than half the year.
  • Someone who’s physically or mentally unable to take care of themselves and lived with the taxpayer for six months and either:
  • The qualifying person was the taxpayer’s dependent or
  • They would have been the taxpayer’s dependent except for one of the following:
  • The qualifying person received gross income of $4,200 or more
  • The qualifying person filed a joint return
  • The taxpayer or spouse, if filing jointly, could be claimed as a dependent on someone else’s return
  • Taxpayers can use the Interactive Tax Assistant on to determine if they can claim this credit.