The Child and Dependent Care Tax Credit reimburses you if you paid for child care or care for an adult dependent. For tax year 2022, filers may be eligible to claim up to $3,000 of the cost of care services for one qualifying person and $6,000 for care services for two or more qualifying persons. You can then be reimbursed for up to 50% of these costs.
File a federal and New York State 2022 tax return by April 18, 2023 to claim the credit.When you file, include Form 2441 (https://www.irs.gov/pub/irs-pdf/f2441.pdf) with your U.S. Individual Income Tax Return Form 1040 (https://www.irs.gov/pub/irs-pdf/f1040.pdf) or U.S. Nonresident Income Tax Return (https://www.irs.gov/forms-pubs/about-form-1040-nr) Form 1040NR.Qualified expenses include money paid out of pocket for the care of a qualifying child or children while you work or look for work. This includes the cost of care outside the home, such as at a day care center, or inside your home, such as a babysitter.When you claim this credit when filing a tax return, you can lower the taxes you owe and potentially increase your refund.
To be eligible for the Child and Dependent Care Tax Credit, you should be able to answer yes to these questions:Did you pay someone or an organization to care for your dependent so that you (and your spouse, if filing a joint return) could work or look for work? Qualifying dependents are:a child under age 13 at the time of care; a spouse or dependent who cannot physically or mentally care for themselves.Did the dependent live with you for more than half the tax year?Did you (and your spouse if you file taxes jointly) earn income? These can be 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?
To claim the credit, 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 paid for your child or dependent's care.Provider’s name, address, and identification number (EIN or Social Security Number).
How to Apply
You will need these forms when filing your tax return:Child and Dependent Care Expenses form: Form 2441 (https://www.irs.gov/pub/irs-pdf/f2441.pdf) .U.S. Individual Income Tax Return: Form 1040 (https://www.irs.gov/pub/irs-pdf/f1040.pdf) or U.S. Nonresident Income Tax Return: (https://www.irs.gov/forms-pubs/about-form-1040-nr) Form 1040NR (https://www.irs.gov/pub/irs-pdf/fw10.pdf) .You must identify all persons or organizations that provided care for your qualifying child or children. This includes:the provider’s name and addressTaxpayer Identification Number or Social Security number. Filers should use IRS Form W-10 (https://www1.nyc.gov/site/dca/consumers/file-your-taxes.page) to request this required information.You qualify for free tax filing with NYC Free Tax Prep if your family earned $80,000 or less or if you're a single filer who earned $56,000 or less in 2022. IRS-certified VITA/TCE volunteer preparers can help you file online, in person, or when you drop off your documents.
File your taxes for free online with NYC Free Tax Prep (https://www1.nyc.gov/site/dca/consumers/file-your-taxes.page) if your family earned $80,000 or less or if you're a single filer who earned $56,000 or less in 2022. IRS-certified VITA/TCE volunteer preparers can help you file online, in person, or when you drop off your documents.
Find a tax prep location
See the 2022 Child and Dependent Care Tax Credit FAQ (https://www.irs.gov/newsroom/child-and-dependent-care-credit-faqs) from the IRS.Learn more about tax credits (https://www1.nyc.gov/site/dca/consumers/get-tax-credit-information.page) you can claim.Call 800-906-9887 to find the nearest Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE).