Tax relief for dependent care

Child and Dependent Care Tax Credit | NYC Department of Consumer Affairs / IRS

Cash & Expenses Everyone

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This tax credit helps working families pay for the care of children, adult dependents, or disabled spouses. You can claim up to $3,000 in expenses for one dependent or $6,000 for more than one when you file your taxes.

  • File your taxes by April 15, 2020
  • The tax credit equals 20-to-35 percent of what you spent on care for a child 12 and under
  • If you qualify, the government mails your refund or deposits it into your bank account
  • Single parents and custodial divorced parents can also qualify for this credit
  • The NYC Child Care Tax Credit is another tax benefit to help families pay for childcare. Parents who earn $30,000 or less and pay for childcare for children age 4 or under may be eligible for a credit of up to $1733.

Eligibility

To be eligible for Child and Dependent Care Tax Credit you should be able to answer yes to these questions:

  • Do you pay someone or an organization to care of your dependent to allow you (and your spouse, if filing a joint return) to work or to look for work?
  • Do you (and your spouse if you file taxes jointly) earn income from wages, salaries, tips, other taxable employee money, or earnings from self-employment?
  • Is your tax filing status single, married filing jointly, head of household or qualifying widow(er) with a dependent child?
  • If you are married, do both you and your spouse work outside of the home, or do one of you work outside of the home while the other is a full-time student, has a disability, or is looking for work?

What will I need to apply?

To claim the credits, you will need to prove the following for all people listed on your tax return:

  • Identity and age: such as photo ID, driver’s license, IDNYC, passport, or naturalization certificate.
  • Citizenship or immigration status: such as your birth certificate or a U.S. passport.
  • Your earned and unearned income (if any): such as a recent pay stub or unemployment benefits statement, pension correspondence, Supplemental Security Income (SSI), or Social Security Disability Insurance (SSDI).
  • Dependent care cost: Amount of money you pay for your child or dependent’s care.
  • Provider’s name, address, and identification number (EIN or Social Security Number).

Application

  • File online: you can file your taxes online, using one of the free sites the City recommends.
  • File in-person: you may qualify to have your taxes prepared for free in person at one of the tax prep locations near you.
  • You will need the following forms:
    • Child and Dependent Care Expenses form: Form 2441.
    • U.S. Individual Income Tax Return: Form 1040 or U.S. Nonresident Income Tax Return: Form 1040NR.
    • If you received dependent care benefits from your employer, you must complete Part III of Form 2441.

Help

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Updated March 31, 2020