Child Care Credit Amount

The actual amount of child care tax credit is a percentage of your eligible work related expenses. However, your child care tax credit amount is subject to ceiling of:

1. your actual child care cost
2. your earned income
3. the dollar limit of either $3,000 (1 qualifying person) or $6,000 (2 or more qualifying persons)

What is my child care credit amount?

The percentage used to calculate your child care credit amount is based on your adjusted gross income or AGI.

If your AGI is $15,000 or less, the child care credit is 35% or the eligible expenses. The percentage decreases as your AGI increases. The lowest percentage for calculating the child care tax credit is 20%.

The table below is used to calculate the child care tax credit amount. This table of child and dependent care tax credit rate can be found in the IRS Publication 17 page 214.