The qualifying expenses to figure the credit are $3000 for one qualifying child or $6000 for more than one. The credit ranges from 35% down to 20%, depending on income.
There are several other tests you must meet to claim the credit:
- You (and your spouse, if you’re married) must have “earned income,” meaning money earned from a job. Non-work income, such as investment profits, doesn’t count.
- You must have paid for the care so that you could work or look for work. Being a full-time student or a parent unable to care for themselves does count as “working” for the purposes of the credit, even if you don’t receive any income for it.
- If you are married, you must file a joint tax return.
- You must provide the name, address and Taxpayer Identification Number (TIN) of the person who provided the care. The taxpayer ID number is either a Social Security number (SSN) or an Employer Identification Number (EIN). Ask your care provider for the number.