CHILD AND DEPENDENT CARE CREDIT (1 OF 4)
01.Core Concepts
General Qualifications • Must have employment-related care costs for a: • Dependent under age 13, or • Dependent or spouse physically or mentally incapable of self care • Married taxpayers must file a joint return. Credit Amount • Eligible care costs x applicable percentage • Applicable percentage ranges from 35% to 50% in 2026 (20% to 35% in 2025) • Beginning in 2026, a second phase down tier for AGI over $75,000 ($150,000 MFJ) gradually reduces the applicable percentage to a minimum of 20%.