If you're claiming the Child and Dependent Care Credit, you can generally include expenses you paid for the care of a qualifying person so you could work or actively look for work. Qualified expenses may include both the cost of care and certain household services related to that care.
Keep in mind that child support payments aren't qualified child care expenses. Expenses reimbursed by a state social services agency also don't qualify unless you included the reimbursement in your taxable income.
If you worked or looked for work during only part of the year, you may need to calculate your expenses based on the days you were eligible. Special rules may apply for temporary absences and part-time employment. For more information, see Publication 503.
Household Services
Household services qualify when they're needed both to care for a qualifying person and to maintain your household.
Examples of qualifying household services include:
- Babysitters
- Housekeepers
- Maids
- Cleaning personnel
- Cooks whose services are partly for the care of the qualifying person
Services provided by a chauffeur or gardener don't qualify.
You can also include your share of employment taxes paid on wages for qualified child and dependent care services.
If you pay someone to care for your dependent or spouse in your home, you may be considered a household employer. In that case, you may have additional tax responsibilities, such as withholding and paying Social Security, Medicare, and federal unemployment taxes. For more information, refer to IRS Publication 926.
Care of a Qualifying Person
Qualified care expenses include amounts paid for a qualifying person's well-being and protection while you work or look for work.
These expenses may include care provided:
- In your home
- Outside your home for a dependent under age 13
- Outside your home for another qualifying person who regularly spends at least 8 hours each day in your home
If care is provided by a dependent care center, the center must comply with applicable state and local regulations.
School, Camp, and Other Expenses
Some expenses include both care and non-care costs. In certain situations, you can include those costs if they are incidental to the care provided and cannot be separated from the total charge.
You may include:
- Day camp expenses, including camps focused on specific activities such as sports, music, or arts
- Meals and other incidental costs that are included in the care provider's overall fee and can't be separated
You can't include:
- Tuition for kindergarten or higher grades
- Overnight camp expenses
- Summer school costs
- Tutoring expenses
- Clothing or entertainment costs
Common Examples of Qualified Child Care Expenses
The following expenses often qualify for the Child and Dependent Care Credit:
- Daycare centers
- Nursery schools
- Before-school and after-school care programs
- Babysitters and nannies
- Day camps
- In-home care providers
- Household services related to caring for a qualifying person
Expenses That Don't Qualify
The following expenses generally don't qualify:
- Child support payments
- Overnight camps
- School tuition for kindergarten and higher grades
- Summer school programs
- Tutoring services
- Clothing
- Entertainment expenses
- Care expenses reimbursed by a state agency unless included in income