What is the Child and Dependent Care Credit (CDCTC)?
Written by New Ventures Maine | Published on October 31, 2016The Child and Dependent Care Credit (CDCTC) is a tax break specifically for working individuals. It allows you to claim a percentage of your out-of-pocket child or dependent care expenses (such as daycare, after-school programs, or day camps) to directly reduce the amount of federal income tax you owe.
If you paid someone to care for your child or other qualifying person so you (and your spouse if filing jointly) could work or look for work, you may be able to take the credit for child and dependent care expenses. The dollar limit on the amount of the expenses you can use to figure the credit is $3,000 for the care of one qualifying individual or $6,000 for two or more qualifying individuals. The amount of your credit is between 20 and 35 percent of your allowable expenses. The percentage you use depends on the amount of your adjusted gross income. For more information you can go here.
