There are special rules for calculating the income of a spouse who was a full-time student or disabled. In general, the credit can only be claimed for a child claimed as a tax dependent, but there are special rules for children of divorced or separated parents. If a family receives free child care, such as from a state-subsidized program, that care cannot be used to qualify for the credit. But if only part of a family's child care is subsidized and the family pays for the rest, the amount the family pays can be counted toward the credit. The size of the Child and Dependent Care Credit depends on the number of children or dependents in care, a family's income, and the amount the family paid for care during the year.
Families can claim only a limited amount of their care expenses.
Eligible families will receive a credit worth between 20 percent and 30 percent of these expenses, depending on their income. With Form 1040A, families must attach Form 2441. With Form 1040A families use Schedule 2. The National Women's Law Center, which helped prepare the materials for the Child and Dependent Care Credit web page, as well as state-level child and dependent care tax provisions. Washington, DC 20036.