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Department of the Treasury
Internal Revenue Service
Publication 503
Cat. No. 15004M
Child and
Dependent
Care Expenses
For use in preparing
2023 Returns
Get forms and other information faster and easier at:
• IRS.gov (English)
• IRS.gov/Spanish (Español)
•
IRS.gov/Chinese (中文)
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IRS.gov/Korean (한국어)
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Contents
What’s New ............................... 1
Reminders ............................... 1
Introduction .............................. 2
Can You Claim the Credit? ................... 2
Who Is a Qualifying Person? ................ 3
You Must Have Earned Income .............. 4
Are These Work-Related Expenses? .......... 6
What’s Your Filing Status? .................. 8
Care Provider Identification Test .............. 9
How To Figure the Credit ................... 10
Figuring Total Work-Related Expenses ........ 10
Earned Income Limit ..................... 11
Dollar Limit ............................ 12
Amount of Credit ....................... 13
How To Claim the Credit .................... 14
Do You Have Household Employees? ......... 14
How To Get Tax Help ....................... 15
Index .................................. 19
Future Developments
For the latest information about developments related to
Pub. 503, such as legislation enacted after it was
published, go to IRS.gov/Pub503.
What’s New
The temporary special rules for dependent care flexi-
ble spending arrangements (FSAs) have expired.
The temporary special rules under Section 214 of the Tax-
payer Certainty and Disaster Relief Act of 2020 that al-
lowed employers to amend their dependent care plan to
carry forward unused amounts from 2020 and/or 2021 to
be used in a subsequent year have expired. For 2023, you
may only enter on Form 2441, line 13, amounts you car-
ried over from 2022 and used in 2023 during the grace pe-
riod. See the line 13 instructions for Form 2441.
Reminders
Personal exemption suspended. For 2023, you can’t
claim a personal exemption for yourself, your spouse, or
your dependents.
Taxpayer identification number needed for each qual-
ifying person. You must include on line 2 of Form 2441,
Child and Dependent Care Expenses, the name and tax-
payer identification number (generally, the social security
number (SSN)) of each qualifying person. See Taxpayer
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identification number under Who Is a Qualifying Person,
later.
You may have to pay employment taxes. If you pay
someone to come to your home and care for your depend-
ent or spouse, you may be a household employer who has
to pay employment taxes. Usually, you aren't a household
employer if the person who cares for your dependent or
spouse does so at his or her home or place of business.
See Do You Have Household Employees, later.
Photographs of missing children. The IRS is a proud
partner with the National Center for Missing & Exploited
Children® (NCMEC). Photographs of missing children se-
lected by the Center may appear in this publication on pa-
ges that would otherwise be blank. You can help bring
these children home by looking at the photographs and
calling 1-800-THE-LOST (1-800-843-5678) if you recog-
nize a child.
Introduction
This publication explains the tests you must meet to claim
the credit for child and dependent care expenses. It ex-
plains how to figure and claim the credit.
You may be able to claim the credit if you pay someone
to care for your dependent who is under age 13 or for your
spouse or dependent who isn't able to care for them-
selves. The credit can be up to 35% of your employ-
ment-related expenses. To qualify, you must pay these ex-
penses so you (or your spouse if filing jointly) can work or
look for work.
This publication also discusses some of the employ-
ment tax rules for household employers.
Dependent care benefits. If you received any depend-
ent care benefits from your employer during the year, you
may be able to exclude all or part of them from your in-
come. You must complete Form 2441, Part III, before you
can figure the amount of your credit. See Dependent Care
Benefits under How To Figure the Credit, later.
Comments and suggestions. We welcome your com-
ments about this publication and suggestions for future
editions.
You can send us comments through IRS.gov/
FormComments. Or, you can write to the Internal Revenue
Service, Tax Forms and Publications, 1111 Constitution
Ave. NW, IR-6526, Washington, DC 20224.
Although we can’t respond individually to each com-
ment received, we do appreciate your feedback and will
consider your comments and suggestions as we revise
our tax forms, instructions, and publications. Don’t send
tax questions, tax returns, or payments to the above ad-
dress.
Getting answers to your tax questions. If you have
a tax question not answered by this publication or the How
To Get Tax Help section at the end of this publication, go
to the IRS Interactive Tax Assistant page at IRS.gov/
Help/ITA where you can find topics by using the search
feature or viewing the categories listed.
Getting tax forms, instructions, and publications.
Go to IRS.gov/Forms to download current and prior-year
forms, instructions, and publications.
Ordering tax forms, instructions, and publications.
Go to IRS.gov/OrderForms to order current forms, instruc-
tions, and publications; call 800-829-3676 to order
prior-year forms and instructions. The IRS will process
your order for forms and publications as soon as possible.
Don’t resubmit requests you’ve already sent us. You can
get forms and publications faster online.
Useful Items
You may want to see:
Publication
501 Dependents, Standard Deduction, and Filing
Information
926 Household Employer's Tax Guide
Form (and Instructions)
2441 Child and Dependent Care Expenses
Schedule H (Form 1040) Household Employment
Taxes
W-10 Dependent Care Provider's Identification and
Certification
See How To Get Tax Help near the end of this publication
for additional information.
Can You Claim the Credit?
To be able to claim the credit for child and dependent care
expenses, you must file Form 1040, 1040-SR, or
1040-NR, and meet all the tests in Tests you must meet to
claim a credit for child and dependent care expenses next.
Tests you must meet to claim a credit for child and
dependent care expenses. To be able to claim the
credit for child and dependent care expenses, you must
meet all the following tests.
1. Qualifying Person Test. The care must be for one or
more qualifying persons who are identified on Form
2441. (See Who Is a Qualifying Person, later.)
2. Earned Income Test. You (and your spouse if filing
jointly) must have earned income during the year.
(However, see Rule for student-spouse or spouse not
able to care for self under You Must Have Earned In-
come, later.)
3. Work-Related Expense Test. You must pay child
and dependent care expenses so you (or your spouse
if filing jointly) can work or look for work. (See Are
These Work-Related Expenses, later.)
4. You must make payments for child and dependent
care to someone you (and your spouse) can't claim as
a dependent. If you make payments to your child (in-
cluding stepchild or foster child), he or she can't be
501
926
2441
Schedule H (Form 1040)
W-10
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your dependent and must be age 19 or older by the
end of the year. You can't make payments to:
a. Your spouse, or
b. The parent of your qualifying person if your qualify-
ing person is your child and under age 13.
See Payments to Relatives or Dependents under
Are These Work-Related Expenses, later.
5. Joint Return Test. Your filing status may be single,
head of household, or qualifying surviving spouse. If
you are married, you must file a joint return, unless an
exception applies to you. See What’s Your Filing Sta-
tus, later.
6. Provider Identification Test. You must identify the
care provider on your tax return. (See Care Provider
Identification Test, later.)
7. If you exclude or deduct dependent care benefits pro-
vided by a dependent care benefit plan, the total
amount you exclude or deduct must be less than the
dollar limit for qualifying expenses (generally, $3,000 if
you had one qualifying person or $6,000 if you had
two or more qualifying persons) in order for you to
claim a credit on the remaining amount. (If you had
two or more qualifying persons, the amount you ex-
clude or deduct will always be less than the dollar limit
because the total amount you can exclude or deduct
is limited to $5,000. See Reduced Dollar Limit under
How To Figure the Credit, later.)
These tests are presented in Figure A and are also ex-
plained in detail in this publication.
Who Is a Qualifying Person?
Your child and dependent care expenses must be for the
care of one or more qualifying persons.
A qualifying person is:
1. Your qualifying child who is your dependent and who
was under age 13 when the care was provided (but
see Child of divorced or separated parents or parents
living apart, later);
2. Your spouse who wasn't physically or mentally able to
care for themselves and lived with you for more than
half the year; or
3. A person who wasn't physically or mentally able to
care for themselves, lived with you for more than half
the year, and either:
a. Was your dependent, or
b. Would have been your dependent except that:
i. He or she received gross income of $4,700 or
more,
ii. He or she filed a joint return, or
iii. You, or your spouse if filing jointly, could be
claimed as a dependent on someone else's
2023 return.
Dependent defined. A dependent is a person, other
than you or your spouse, for whom you could claim an ex-
emption. To be your dependent, a person must be your
qualifying child (or your qualifying relative). However, the
deductions for personal and dependency exemptions for
tax years 2018 through 2025 are suspended, and, there-
fore, the amount of the deduction is zero. But, in determin-
ing whether you may claim a person as a qualifying rela-
tive for 2023, the person's gross income must be less than
$4,700.
Qualifying child. To be your qualifying child, a child
must live with you for more than half the year and meet
other requirements.
More information. For more information about who is
a dependent or a qualifying child, see Pub. 501.
Physically or mentally not able to care for oneself.
Persons who can't dress, clean, or feed themselves be-
cause of physical or mental disabilities are considered not
able to care for themselves. Also, persons who must have
constant attention to prevent them from injuring them-
selves or others are considered not able to care for them-
selves.
Person qualifying for part of year. You determine a
person's qualifying status each day. For example, if your
child for whom you pay child and dependent care expen-
ses turns 13 years old and no longer qualifies on Septem-
ber 16, count only those expenses through September 15.
Also see Yearly limit under Dollar Limit, later.
Birth or death of otherwise qualifying person. In de-
termining whether a person is a qualifying person, a per-
son who was born or died in 2023 is treated as having
lived with you for more than half of 2023 if your home was
the person's home more than half the time he or she was
alive in 2023.
Taxpayer identification number. You must include on
your return the name and taxpayer identification number
(generally, the SSN) of the qualifying person(s). If the cor-
rect information isn't shown, the credit may be reduced or
disallowed.
Individual taxpayer identification number (ITIN) for
aliens. If your qualifying person is a nonresident or resi-
dent alien who doesn't have and can't get an SSN, use
that person's ITIN. The ITIN is entered wherever an SSN
is requested on a tax return. If the alien doesn't have an
ITIN, he or she must apply for one. See Form W-7, Appli-
cation for IRS Individual Taxpayer Identification Number,
for details.
An ITIN is for tax use only. It doesn't entitle the holder to
social security benefits or change the holder's employ-
ment or immigration status under U.S. law.
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All ITINs not used on a federal tax return at least
once for tax year 2020, 2021, or 2022 will expire
on December 31, 2023. Additionally, ITINs with
certain specified middle digits have expired. All expired
ITINs must be renewed before being used on your tax re-
turn. See the Instructions for Form W-7 or go to IRS.gov/
ITIN for information about which ITINs have expired.
Adoption taxpayer identification number (ATIN). If
your qualifying person is a child who was placed in your
home for adoption and for whom you don't have an SSN,
you must get an ATIN for the child. File Form W-7A, Appli-
cation for Taxpayer Identification Number for Pending U.S.
Adoptions.
Child of divorced or separated parents or parents liv-
ing apart. Even if you can't claim your child as a depend-
ent, he or she is treated as your qualifying person if:
•
The child was under age 13 or wasn't physically or
mentally able to care for themselves;
•
The child received over half of his or her support dur-
ing the calendar year from one or both parents who
are divorced or legally separated under a decree of di-
vorce or separate maintenance, are separated under a
written separation agreement, or lived apart at all
times during the last 6 months of the calendar year;
•
The child was in the custody of one or both parents for
more than half the year; and
•
You were the child's custodial parent.
The custodial parent is the parent with whom the child
lived for the greater number of nights in 2023. If the child
was with each parent for an equal number of nights, the
custodial parent is the parent with the higher adjusted
gross income. For details and an exception for a parent
who works at night, see Pub. 501.
The noncustodial parent can't treat the child as a quali-
fying person even if that parent is entitled to claim the child
as a dependent under the special rules for a child of di-
vorced or separated parents.
You Must Have Earned Income
To claim the credit, you (and your spouse if filing jointly)
must have earned income during the year.
Earned income. Earned income includes wages, salar-
ies, tips, other taxable employee compensation, and net
earnings from self-employment. A net loss from self-em-
ployment reduces earned income. Earned income also in-
cludes strike benefits and any disability pay you report as
wages.
Generally, only taxable compensation is included. For
example, foreign earned income you exclude from income
isn't included. However, you can elect to include nontaxa-
ble combat pay in earned income. If you are filing a joint
return and both you and your spouse received nontaxable
combat pay, you can each make your own election. (In
other words, if one of you makes the election, the other
CAUTION
!
one can also make it but doesn't have to.) Including this in-
come will give you a larger credit only if your (or your
spouse's) other earned income is less than the amount
entered on line 3 of Form 2441.
You can elect to include your nontaxable combat
pay in earned income when figuring your credit for
child and dependent care expenses, even if you
elect not to include it in earned income for the earned in-
come credit or the exclusion or deduction for dependent
care benefits.
Members of certain religious faiths opposed to social
security. This section is for persons who are members of
certain religious faiths that are opposed to participation in
Social Security Act programs and have an IRS-approved
form that exempts certain income from social security and
Medicare taxes. These forms are:
•
Form 4361, Application for Exemption From Self-Em-
ployment Tax for Use by Ministers, Members of Reli-
gious Orders and Christian Science Practitioners; and
•
Form 4029, Application for Exemption From Social Se-
curity and Medicare Taxes and Waiver of Benefits, for
use by members of recognized religious groups.
Each form is discussed here in terms of what is or isn't
earned income for purposes of the child and dependent
care credit. For information on the use of these forms, see
Pub. 517, Social Security and Other Information for Mem-
bers of the Clergy and Religious Workers.
Form 4361. Whether or not you have an approved
Form 4361, amounts you received for performing minister-
ial duties as an employee are earned income. This in-
cludes wages, salaries, tips, and other taxable employee
compensation.
However, amounts you received for ministerial duties,
but not as an employee, don't count as earned income.
Examples include fees for performing marriages and hon-
oraria for delivering speeches.
Any amount you received for work that isn't related to
your ministerial duties is earned income.
Form 4029. Whether or not you have an approved
Form 4029, all wages, salaries, tips, and other taxable em-
ployee compensation are earned income.
However, amounts you received as a self-employed in-
dividual don't count as earned income.
What isn't earned income? Earned income doesn't in-
clude:
•
Amounts excluded as foreign earned income (includ-
ing any housing exclusion) on Form 2555, line 43;
•
Pensions and annuities;
•
Social security and railroad retirement benefits;
•
Workers' compensation;
•
Interest and dividends;
•
Unemployment compensation;
TIP
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Figure A. Can You Claim the Credit?
Start Here
Yes
No
Was the care for one or more qualifying persons?
Did you
1
have earned income during the year?
Did you pay the expenses to allow you to work or look for work?
Were your payments made to someone you or your spouse could
claim as a dependent?
Were your payments made to your child who was under the age of
19 at the end of the year?
Are you single?
Are you ling a joint return?
Do you meet the requirements
to be considered unmarried?
Do you know the care provider’s name, address,
and identifying number?
Did you make a reasonable effort to get this
information? (See Due diligence.)
Did you have more than one qualifying person?
You may be able to claim the child and
dependent care credit. Fill out Form 2441.
You CAN’T claim the child
and dependent care credit.
2
1
2
This also applies to your spouse, unless your spouse was disabled or a full-time student.
If you had expenses that met the requirements for 2022, except that you didn’t pay them until 2023, you may be able to claim those expenses in 2023. See
Expenses not paid until the following year under How To Figure the Credit.
No
No
Yes
Yes
Yes
Yes
No
No
Yes
No
No
Yes
No
No
No
Yes
No
Yes
Yes
Were your payments made to your spouse or to the parent of your
qualifying person who is your qualifying child and under age 13?
Yes
No
Are you excluding or deducting at least $3,000
of dependent care benets?
No
Yes
▼
▼
▼
▼
▼
▼
▼
▼
▼
▼
▼
▼
▼
▼
▼
▼
▼
▶
▶
▶
▶
▶
▶
▶
▶
▶
▶
▼
▶
Yes
▼
▶
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•
Scholarships or fellowship grants, except for those re-
ported on Form W-2 and paid to you for teaching or
other services;
•
Nontaxable workfare payments;
•
Child support payments received;
•
Income of a nonresident alien that isn't effectively con-
nected with a U.S. trade or business; or
•
Any amount received for work while an inmate in a pe-
nal institution.
Rule for student-spouse or spouse not able to care
for self. Your spouse is treated as having earned income
for any month that he or she is:
1. A full-time student, or
2. Physically or mentally not able to care for themselves.
(Your spouse must also live with you for more than
half the year.)
If you are filing a joint return, this rule also applies to
you. You can be treated as having earned income for any
month you are a full-time student or not able to care for
yourself.
Figure the earned income of the nonworking spouse,
described under (1) or (2) above, as shown under Earned
Income Limit under How To Figure the Credit, later.
This rule applies to only one spouse for any 1 month. If,
in the same month, both you and your spouse didn't work
and are either full-time students or not physically or men-
tally able to care for yourselves, only one of you can be
treated as having earned income in that month.
Full-time student. You are a full-time student if you
are enrolled at a school for the number of hours or classes
that the school considers full-time. You must have been a
full-time student for some part of each of 5 calendar
months during the year. (The months need not be consec-
utive.)
School. The term “school” includes high schools, col-
leges, universities, and technical, trade, and mechanical
schools. A school doesn't include an on-the-job training
course, correspondence school, or school offering cour-
ses only through the Internet.
Are These Work-Related Expenses?
Child and dependent care expenses must be work related
to qualify for the credit. Expenses are considered work re-
lated only if both of the following are true.
•
They allow you (or your spouse if filing jointly) to work
or look for work.
•
They are for a qualifying person's care.
Working or Looking for Work
To be work related, your expenses must allow you to work
or look for work. If you are married, you or your spouse
must work or look for work. Note, however, that employ-
ment-related expenses are limited to the lower of the
earned income of you or your spouse. If you or your
spouse was a full-time student or disabled, see Rule for
student-spouse or spouse not able to care for self, earlier.
Your work can be for others or in your own business or
partnership. It can be either full-time or part-time and it
can be either in or out of your home.
Work also includes actively looking for work. However,
if you don't find a job and have no earned income for the
year, you can't take this credit. See You Must Have Earned
Income, earlier.
An expense isn't considered work related merely be-
cause you had it while you were working. The purpose of
the expense must be to allow you to work. Whether your
expenses allow you to work or look for work depends on
the facts.
Example 1. The cost of a babysitter while you and
your spouse go out to eat isn't normally a work-related ex-
pense.
Example 2. You work during the day. Your spouse
works at night and sleeps during the day. You pay for care
of your 5-year-old child during the hours when you are
working and your spouse is sleeping. Your expenses are
considered work related.
Volunteer work. For this purpose, you aren't considered
to be working if you do unpaid volunteer work or work for a
nominal salary.
Work for part of year. If you work or actively look for
work during only part of the period covered by the expen-
ses, then you must figure your expenses for each day. For
example, if you work all year and pay care expenses of
$250 a month ($3,000 for the year), all the expenses are
work related. However, if you work or look for work for only
2 months and 15 days during the year and pay expenses
of $250 a month, your work-related expenses are limited
to $625 (2
1
/2 months × $250).
Temporary absence from work. You don't have to fig-
ure your expenses for each day during a short, temporary
absence from work, such as for vacation or a minor ill-
ness, if you have to pay for care anyway. Instead, you can
figure your credit including the expenses you paid for the
period of absence.
An absence of 2 weeks or less is a short, temporary ab-
sence. An absence of more than 2 weeks may be consid-
ered a short, temporary absence, depending on the cir-
cumstances.
Example 1. You pay a dependent care center, which
complies with all state and local regulations, to care for
your 2-year-old daughter so you can work full-time. The
center requires payment for days when a child is absent.
You take 8 days off from work as vacation days. Because
the absence is less than 2 consecutive calendar weeks,
your absence is a short, temporary absence. You aren't re-
quired to allocate expenses between days worked and
days not worked. The entire fee for the period that
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includes the 8 vacation days may be a work-related ex-
pense.
Example 2. You pay a nanny to care for your
2-year-old son and 4-year-old daughter so you can work.
You become ill and miss 4 months of work but receive sick
pay. You continue to pay the nanny to care for the children
while you are ill. Your absence isn't a short, temporary ab-
sence, and your expenses aren't considered work related.
Part-time work. If you work part-time, you must generally
figure your expenses for each day. However, if you are re-
quired to pay for care weekly, monthly, or in another way
that includes both days worked and days not worked, you
can figure your credit including the expenses you paid for
days you didn't work. Any day when you work at least 1
hour is a day of work.
Example 1. You work 3 days a week. While you work,
your 6-year-old child attends a dependent care center,
which complies with all state and local regulations. You
can pay the center $150 for any 3 days a week or $250 for
5 days a week. Your child attends the center 5 days a
week. You must allocate your expenses for dependent
care between days worked and days not worked; your
work-related expenses are limited to $150 a week.
Example 2. The facts are the same as in Example 1,
except the center doesn't offer a 3-day option. The entire
$250 weekly fee may be a work-related expense.
Care of a Qualifying Person
To be work related, your expenses must be to provide care
for a qualifying person.
You don't have to choose the least expensive way of
providing the care. The cost of a paid care provider may
be an expense for the care of a qualifying person even if
another care provider is available at no cost.
Expenses are for the care of a qualifying person only if
their main purpose is the person's well-being and protec-
tion.
Expenses for household services qualify if part of the
services is for the care of qualifying persons. See House-
hold Services, later.
Expenses not for care. Expenses for care don't include
amounts you pay for food, lodging, clothing, education,
and entertainment. However, you can include small
amounts paid for these items if they are incidental to and
can't be separated from the cost of caring for the qualify-
ing person. Otherwise, see the discussion under Expen-
ses partly work related, later.
Child support payments aren't for care and don't qualify
for the credit.
Education. Expenses for a child in nursery school, pre-
school, or similar programs for children below the level of
kindergarten are expenses for care.
Expenses to attend kindergarten or a higher grade
aren't expenses for care. Don't use these expenses to fig-
ure your credit.
However, expenses for before- or after-school care of a
child in kindergarten or a higher grade may be expenses
for care.
Summer school and tutoring programs aren't for care.
Example 1. You send your 3-year-old child to a nurs-
ery school while you work. The nursery school provides
lunch and a few educational activities as part of its pre-
school childcare service. The lunch and educational activ-
ities are incidental to the childcare, and their cost can't be
separated from the cost of care. You can count the total
cost when you figure the credit.
Example 2. You are a member of the Armed Forces,
and you are ordered to a combat zone. To be able to com-
ply with the order, you place your 10-year-old child in a
boarding school. Only the part of the boarding school ex-
pense that is for the care of your child is a work-related ex-
pense. You can count that part of the expense in figuring
your credit if it can be separated from the cost of educa-
tion. You can't count any part of the amount you pay the
school for your child's education.
Care outside your home. You can count the cost of care
provided outside your home if the care is for your depend-
ent under age 13 or any other qualifying person who regu-
larly spends at least 8 hours each day in your home.
Dependent care center. You can count care provided
outside your home by a dependent care center only if the
center complies with all state and local regulations that
apply to these centers.
A dependent care center is a place that provides care
for more than six persons (other than persons who live
there) and receives a fee, payment, or grant for providing
services for any of those persons, even if the center isn't
run for profit.
Camp. The cost of sending your child to an overnight
camp isn't considered a work-related expense.
The cost of sending your child to a day camp may be a
work-related expense, even if the camp specializes in a
particular activity, such as computers or soccer.
Example 1. You send your 9-year-old child to a sum-
mer day camp while you work. The camp offers computer
activities and recreational activities such as swimming and
arts and crafts. The full cost of the summer day camp may
be for care and the costs may be a work-related expense.
Example 2. You send your 10-year-old child to a math
tutoring program for 2 hours per day during the summer
while you work. The cost of the tutoring program isn't for
care and the costs are not considered work-related expen-
ses.
Transportation. If a care provider takes a qualifying per-
son to or from a place where care is provided, that trans-
portation is for the care of the qualifying person. This in-
cludes transportation by bus, subway, taxi, or private car.
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However, transportation not provided by a care provider
isn't for the care of a qualifying person. Also, if you pay the
transportation cost for the care provider to come to your
home, that expense isn't for care of a qualifying person.
Fees and deposits. Fees you paid to an agency to get
the services of a care provider, deposits you paid to an
agency or preschool, application fees, and other indirect
expenses are work-related expenses if you have to pay
them to get care, even though they aren't directly for care.
However, a forfeited deposit isn't for the care of a qualify-
ing person if care isn't provided.
Example 1. You paid a fee to an agency to get the
services of the nanny who cares for your 2-year-old
daughter while you work. The fee you paid is a work-rela-
ted expense.
Example 2. You placed a deposit with a preschool to
reserve a place for your 3-year-old child. You later sent
your child to a different preschool and forfeited the de-
posit. The forfeited deposit isn't for care and therefore not
a work-related expense.
Household Services
Expenses you pay for household services meet the
work-related expense test if they are at least partly for the
well-being and protection of a qualifying person.
Definition. Household services are ordinary and usual
services done in and around your home that are neces-
sary to run your home. They include, for example, the
services of a cook, maid, babysitter, housekeeper, or
cleaning person if the services were partly for the care of
the qualifying person. However, they don't include the
services of a chauffeur, bartender, or gardener.
Housekeeper. In this publication, the term “house-
keeper” refers to any household employee whose services
include the care of a qualifying person.
Expenses partly work related. If part of an expense is
work related (for either household services or the care of a
qualifying person) and part is for other purposes, you have
to divide the expense. To figure your credit, count only the
part that is work related. However, you don't have to divide
the expense if only a small part is for other purposes.
Example. You pay a housekeeper to care for your
9-year-old and 14-year-old children so you can work. The
housekeeper spends most of the time doing normal
household work and spends 30 minutes a day driving you
to and from work. You don't have to divide the expenses.
You can treat the entire expense of the housekeeper as
work related because the time spent driving is minimal.
Nor do you have to divide the expenses between the two
children, even though the expenses are partly for the
14-year-old child who isn't a qualifying person, because
the expense is also partly for the care of your 9-year-old
child, who is a qualifying person. However, the dollar limit
(discussed later) is based on one qualifying person, not
two.
Meals and lodging provided for housekeeper. If you
have expenses for meals that your housekeeper eats in
your home because of his or her employment, count these
as work-related expenses. If you have extra expenses for
providing lodging in your home to the housekeeper, count
these as work-related expenses also.
Example. To provide lodging to the housekeeper, you
move to an apartment with an extra bedroom. You can
count the extra rent and utility expenses for the housekee-
per's bedroom as work related. However, if your house-
keeper moves into an existing bedroom in your home, you
can count only the extra utility expenses as work related.
Taxes paid on wages. The taxes you pay on wages for
qualifying child and dependent care services are work-re-
lated expenses. For more information on a household em-
ployer's tax responsibilities, see Do You Have Household
Employees, later.
Payments to Relatives or Dependents
You can count work-related payments you make to rela-
tives who aren't your dependents, even if they live in your
home. However, don't count any amounts you pay to:
1. A person for whom you (or your spouse if filing jointly)
can claim as a dependent;
2. Your child (including stepchild or foster child) who was
under age 19 at the end of the year, even if he or she
isn't your dependent;
3. A person who was your spouse any time during the
year; or
4. The parent of your qualifying person if your qualifying
person is your child and under age 13.
What’s Your Filing Status?
Generally, married couples must file a joint return to take
the credit. However, if you are legally separated or living
apart from your spouse, you may be able to file a separate
return and still take the credit.
Legally separated. You aren't considered married if you
are legally separated from your spouse under a decree of
divorce or separate maintenance. You may be eligible to
take the credit on your return using head of household fil-
ing status.
Married and living apart. You aren't considered married
and are eligible to take the credit if all the following apply.
1. You file a return apart from your spouse.
2. Your home is the home of a qualifying person for more
than half the year.
3. You pay more than half the cost of keeping up your
home for the year.
4. Your spouse doesn't live in your home for the last 6
months of the year.
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Example 1. Amy separated from her spouse in
March. She isn't separated under a decree of divorce or
separate maintenance agreement and uses the married
filing separate filing status. Amy maintains a home for her-
self and Sam, her disabled brother. Sam is permanently
and totally disabled and unable to care for himself.
Because Sam earns $5,600 in interest income, Amy
can't claim him as a dependent (his gross income is
greater than $4,700). And, because Amy isn't able to
claim Sam as a dependent and she is still married as of
the end of the year, she can't use the head of household
filing status. Amy’s filing status is married filing separately
and Sam qualifies as a qualifying person for the child and
dependent care credit.
Because of the following facts, Amy is able to claim the
credit for child and dependent care expenses even though
Amy uses the married filing separately filing status.
•
Amy didn't live with her spouse for the last 6 months of
the year.
•
She has maintained a home for herself and Sam (a
qualifying person) since she separated from her
spouse in March.
•
She maintains her own household and provides more
than half of the cost of maintaining that home for her
and Sam.
•
Amy pays an adult daycare center to care for Sam to
allow her to work.
Example 2. Dean separated from his spouse in April.
He isn't separated under a decree of divorce or separate
maintenance agreement. He and his spouse haven't lived
together since April, and Dean maintains his own home
and provides more than half the cost of maintaining that
home for himself and his daughter, Nicole, who is perma-
nently and totally disabled.
Because Nicole is married and files a joint return with
her husband, who is away in the military, Dean can't claim
Nicole as a dependent and therefore can't use the head of
household filing status. Dean’s filing status is married filing
separately and Nicole qualifies as a qualifying person for
the child and dependent care credit.
Because of the following facts, Dean is able to claim the
credit for child and dependent care expenses even though
he uses the married filing separately filing status.
•
Dean didn't live with his spouse for the last 6 months
of the year.
•
He has maintained a home for himself and Nicole (a
qualifying person) since he separated from his spouse
in April.
•
He maintains his own household and provides more
than half of the cost of maintaining that home for him
and Nicole.
•
Dean pays a daycare provider to care for Nicole to al-
low him to work.
Costs of keeping up a home. The costs of keeping
up a home normally include property taxes, mortgage in-
terest, rent, utility charges, home repairs, insurance on the
home, and food eaten at home.
The costs of keeping up a home don't include pay-
ments for clothing, education, medical treatment, vaca-
tions, life insurance, transportation, or mortgage principal.
They also don't include the purchase, permanent im-
provement, or replacement of property. For example, you
can't include the cost of replacing a water heater. How-
ever, you can include the cost of repairing a water heater.
Death of spouse. If your spouse died during the year
and you don't remarry before the end of the year, you must
generally file a joint return to take the credit. If you do re-
marry before the end of the year, the credit can be claimed
on your deceased spouse's own return.
Care Provider Identification Test
You must identify all persons or organizations that provide
care for your child or dependent. Use Form 2441, Part I, to
show the information.
If you don't have any care providers and you are filing
Form 2441 only to report taxable income in Part III, enter
“none” on line 1, column (a).
Information needed. To identify the care provider, you
must give the provider's:
1. Name,
2. Address, and
3. Taxpayer identification number.
If the care provider is an individual, the taxpayer identifi-
cation number is his or her social security number or indi-
vidual taxpayer identification number. If the care provider
is an organization, then it is the employer identification
number (EIN).
You don't have to show the taxpayer identification num-
ber if the care provider is a tax-exempt organization (such
as a church or school). In this case, enter “Tax-Exempt” in
the space where Form 2441 asks for the number.
If you can't provide all of the information or the informa-
tion is incorrect, you must be able to show that you used
due diligence (discussed later) in trying to furnish the nec-
essary information.
Getting the information. You can use Form W-10 to re-
quest the required information from the care provider. If
you don't use Form W-10, you can get the information
from one of the other sources listed in the instructions for
Form W-10, including:
1. A copy of the provider's social security card;
2. A copy of the provider's completed Form W-4, Em-
ployee's Withholding Certificate, if he or she is your
household employee;
3. A copy of the statement furnished by your employer if
the provider is your employer's dependent care plan;
or
4. A recently printed letterhead or invoice that shows the
provider's name, address, and TIN.
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You should keep this information with your tax re-
cords. Don't send Form W-10 (or other document
containing this information) to the IRS.
Due diligence. If the care provider information you give is
incorrect or incomplete, your credit may not be allowed.
However, if you can show that you used due diligence in
trying to supply the information, you can still claim the
credit.
You can show due diligence by getting and keeping the
provider's completed Form W-10 or one of the other sour-
ces of information just listed. Care providers can be penal-
ized if they don't provide this information to you or if they
provide incorrect information.
Provider refusal. If the provider refuses to give you
the identifying information, you should report on Form
2441 whatever information you have (such as the name
and address). Enter “See Attached Statement” in the col-
umns calling for the information you don't have. Then at-
tach a statement explaining that you requested the infor-
mation from the care provider, but the provider didn't give
you the information. Be sure to write your name and SSN
on this statement. The statement will show that you used
due diligence in trying to furnish the necessary informa-
tion.
U.S. citizens and resident aliens living abroad. If you
are living abroad, your care provider may not have, and
may not be required to get, a U.S. taxpayer identification
number (for example, an SSN or an EIN). If so, enter
“LAFCP” (Living Abroad Foreign Care Provider) in the
space for the care provider's taxpayer identification num-
ber.
How To Figure the Credit
Your credit is a percentage of your work-related expenses.
Your expenses are subject to the earned income limit and
the dollar limit. The percentage is based on your adjusted
gross income.
Figuring Total Work-Related
Expenses
To figure the credit for 2023 work-related expenses, count
only those you paid by December 31, 2023.
Expenses prepaid in an earlier year. If you pay for
services before they are provided, you can count the pre-
paid expenses only in the year the care is received. Claim
the expenses for the later year as if they were actually paid
in that later year.
Expenses not paid until the following year. Don't
count 2022 expenses that you paid in 2023 as work-rela-
ted expenses for 2023. You may be able to claim an addi-
tional credit for them on your 2023 return, but you must fig-
ure it separately. See Payments for prior-year expenses
under Amount of Credit, later.
RECORDS
If you had expenses in 2023 that you didn't pay
until 2024, you can't count them when figuring
your 2023 credit. You may be able to claim a
credit for them on your 2024 return.
Expenses reimbursed. If your employer reimburses
your employment-related expenses under a dependent
care assistance program, you can't count the expenses
that are reimbursed as work-related expenses.
If a state social services agency pays you a nontaxable
amount to reimburse you for some of your child and de-
pendent care expenses, you can't count the expenses that
are reimbursed as work-related expenses.
Example. You paid work-related expenses of $3,000.
You are reimbursed $2,000 by a state social services
agency. You can use only $1,000 to figure your credit.
Medical expenses. Some expenses for the care of quali-
fying persons who aren't able to care for themselves may
qualify as work-related expenses and also as medical ex-
penses. You can use them either way, but you can't use
the same expenses to claim both a credit and a medical
expense deduction.
If you use these expenses to figure the credit and they
are more than the earned income limit or the dollar limit,
discussed later, you can add the excess to your medical
expenses. However, if you use your total expenses to fig-
ure your medical expense deduction, you can't use any
part of them to figure your credit. For information on medi-
cal expenses, see Pub. 502, Medical and Dental Expen-
ses.
Amounts excluded from your income under your
employer's dependent care benefits plan can't be
used to claim a medical expense deduction.
Dependent Care Benefits
If you receive dependent care benefits, your dollar limit for
purposes of the credit may be reduced. See Reduced Dol-
lar Limit, later. But, even if you can't take the credit, you
may be able to take an exclusion or deduction for the de-
pendent care benefits.
Dependent care benefits. Dependent care benefits in-
clude:
1. Amounts your employer paid directly to either you or
your care provider for the care of your qualifying per-
son while you work,
2. The fair market value of care in a daycare facility pro-
vided or sponsored by your employer, and
3. Pre-tax contributions you made under a dependent
care flexible spending arrangement.
Your salary may have been reduced to pay for these bene-
fits. If you received dependent care benefits as an em-
ployee, they should be shown in box 10 of your Form W-2,
Wage and Tax Statement. See Statement for employee,
later. Benefits you received as a partner should be shown
in box 13 of your Schedule K-1 (Form 1065) with code O.
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Enter the amount of these benefits on Form 2441, Part
III, line 12.
Exclusion or deduction. If your employer provides de-
pendent care benefits under a qualified plan, you may be
able to exclude these benefits from your income. Your em-
ployer can tell you whether your benefit plan qualifies. To
claim the exclusion, you must complete Part III of Form
2441.
If you are self-employed and receive benefits from a
qualified dependent care benefit plan, you are treated as
both employer and employee. Therefore, you wouldn't get
an exclusion from wages. Instead, you would get a deduc-
tion on Schedule C (Form 1040), line 14; Schedule E
(Form 1040), line 19 or 28; or Schedule F (Form 1040),
line 15. To claim the deduction, you must use Form 2441.
The amount you can exclude or deduct is limited to the
smallest of:
1. The total amount of dependent care benefits you re-
ceived during the year,
2. The total amount of qualified expenses you incurred
during the year,
3. Your earned income,
4. Your spouse's earned income, or
5. The maximum amount allowed under your dependent
care plan. For 2023, the maximum amount that can be
excluded from an employee's income through a de-
pendent care assistance program is $5,000 ($2,500 if
married filing separately).
The definition of earned income for the exclusion or de-
duction is the same as the definition used when figuring
the credit except that earned income for the exclusion or
deduction doesn't include any dependent care benefits
you receive.
You can elect to include your nontaxable combat
pay in earned income when figuring your exclu-
sion or deduction, even if you elect not to include
it in earned income for the earned income credit or the
credit for child and dependent care expenses.
Statement for employee. Your employer must give you a
Form W-2 (or similar statement), showing in box 10 the to-
tal amount of dependent care benefits provided to you
during the year under a qualified plan. Your employer will
also include in your wages shown in box 1 of your Form
W-2 any dependent care benefits that exceed the maxi-
mum amount of dependent care benefits allowed to be ex-
cluded. The maximum amount is $5,000 ($2,500 if mar-
ried filing separately).
Effect of exclusion on credit. If you exclude dependent
care benefits from your income, the amount of the exclu-
ded benefits:
1. Isn't included in your work-related expenses; and
2. Reduces the dollar limit, discussed later.
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Earned Income Limit
The amount of work-related expenses you use to figure
your credit can't be more than:
1. Your earned income for the year if you are single at
the end of the year, or
2. The smaller of your or your spouse's earned income
for the year if you are married at the end of the year.
Earned income for the purpose of figuring the credit is
defined under You Must Have Earned Income, earlier.
For purposes of item (2), use your spouse's
earned income for the entire year, even if you
were married for only part of the year.
Example. You remarried on December 3. Your earned
income for the year was $18,000. Your new spouse's
earned income for the year was $2,000. You paid work-re-
lated expenses of $3,000 for the care of your 5-year-old
child and qualified to claim the credit. The amount of ex-
penses you use to figure your credit can't be more than
$2,000 (the smaller of your earned income or that of your
spouse).
Separated spouse. If you are legally separated or mar-
ried and living apart from your spouse (as described un-
der What’s Your Filing Status, earlier), you aren't consid-
ered married for purposes of the earned income limit. Use
only your income in figuring the earned income limit.
Surviving spouse. If your spouse died during the year
and you file a joint return as a surviving spouse, you may,
but aren't required to, take into account the earned income
of your spouse who died during the year.
Community property laws. Disregard community prop-
erty laws when you figure earned income for this credit.
Community property laws are explained in Pub. 555.
Self-employment earnings. If you are self-employed, in-
clude your net earnings in earned income. For purposes of
the child and dependent care credit, net earnings from
self-employment generally means the amount from
Schedule SE (Form 1040), line 3, minus any deduction for
self-employment tax on Schedule 1 (Form 1040), line 15.
Include your self-employment earnings in earned income,
even if they are less than $400 and you didn't file Sched-
ule SE (Form 1040).
Clergy or church employee. If you are a member of
the clergy or a church employee, see the Instructions for
Form 2441 for details.
Statutory employee. If you filed Schedule C (Form
1040) to report income as a statutory employee, also in-
clude as earned income the amount from line 1 of that
Schedule C (Form 1040).
Net loss. You must reduce your earned income by any
net loss from self-employment.
Optional method if earnings are low or a net loss.
If your net earnings from self-employment are low or you
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have a net loss, you may be able to figure your net earn-
ings by using an optional method instead of the regular
method. See Pub. 334, Tax Guide for Small Business, for
details. If you use an optional method to figure net earn-
ings for self-employment tax purposes, include those net
earnings in your earned income for this credit. In this case,
subtract any deduction you claimed on Schedule 1 (Form
1040), line 15, from the total of the amounts on Sched-
ule SE (Form 1040), lines 3 and 4b, to figure your net
earnings.
You or your spouse is a student or not able to care
for self. Your spouse who is either a full-time student or
not able to care for themselves is treated as having
earned income. His or her earned income for each month
is considered to be at least $250 if there is one qualifying
person in your home, or at least $500 if there are two or
more qualifying persons at any time during the year.
Spouse works. If your spouse works during that
month, use the higher of $250 (or $500) or his or her ac-
tual earned income for that month.
Spouse qualifies for part of month. If your spouse is
a full-time student or not able to care for themselves for
only part of a month, the full $250 (or $500) still applies for
that month.
You are a student or not able to care for yourself.
These rules also apply if you are a student or not able to
care for yourself and are filing a joint return. For each
month or part of a month you are a student or not able to
care for yourself, your earned income is considered to be
at least $250 (or $500). If you also work during that month,
use the higher of $250 (or $500) or your actual earned in-
come for that month.
Both spouses qualify. If, in the same month, both you
and your spouse are either full-time students or not able to
care for yourselves, only one spouse can be considered to
have this earned income of $250 (or $500) for that month.
Example 1. Jim works and keeps up a home for him-
self and his wife, Sharon. Because of an accident, Sharon
isn't able to care for herself for 11 months during the tax
year.
During the 11 months, Jim pays $3,300 of work-related
expenses for Sharon's care. These expenses also qualify
as medical expenses. Their adjusted gross income is
$29,000 and the entire amount is Jim's earned income.
Jim and Sharon's earned income limit is the smallest of
the following amounts.
Jim and Sharon's Earned Income Limit
1) Work-related expenses Jim paid ......... $ 3,300
2) Jim's earned income ................. $ 29,000
3) Income considered earned by Sharon
(11 × $250) ..................... $ 2,750
Jim and Sharon can use $2,750 to figure the credit and
treat the balance of $550 ($3,300 − $2,750) as a medical
expense. However, if they use the $3,300 first as a medi-
cal expense, they can't use any part of that amount to fig-
ure the credit.
Example 2. For all of the year, Karen is a full-time stu-
dent and Mark, Karen's husband, is an individual who is
incapable of self-care. Karen and Mark have no earned in-
come and pay expenses of $5,000 for Mark's care. Either
Karen or Mark may be deemed to have $3,000 of earned
income. However, earned income may be attributed to
only one spouse. Therefore, the lesser of Karen's and
Mark's earned income is zero. Karen and Mark may not
take the expenses into account and may not claim the
credit for the year.
Dollar Limit
There is a dollar limit on the amount of your work-related
expenses you can use to figure the credit. This limit is
$3,000 if you had one qualifying person, or $6,000 if you
had two or more qualifying persons.
The maximum amount of work-related expenses
you can take into account for purposes of the
credit is $6,000 if you have two or more qualifying
persons even if you only incurred expenses for just one of
them. For example, if you have two qualifying children,
one age 3 and one age 11, and you incur $6,000 of quali-
fying work-related expenses for the 3-year-old, and no
qualifying work-related expenses for the 11-year-old, you
can use $6,000 to figure the credit. In this situation, you
should list $6,000 for the 3-year-old child and -0- for the
11-year-old child. The $6,000 limit would be used to com-
pute your credit unless you have already excluded or de-
ducted dependent care benefits paid to you (or on your
behalf) by your employer.
Yearly limit. The dollar limit is a yearly limit. The amount
of the dollar limit remains the same no matter how long,
during the year, you have a qualifying person in your
household. Use the $3,000 limit if you had one qualifying
person at any time during the year. Use $6,000 if you had
more than one qualifying person at any time during the
year.
Example 1. You pay $500 a month for after-school
care for your son. He turned 13 on May 1 and is no longer
a qualifying person. You can use the $2,000 of expenses
for his care January through April to figure your credit be-
cause it isn't more than the $3,000 yearly limit.
Example 2. In July of this year, to permit your spouse
to begin a new job, you enrolled your 3-year-old daughter
in a nursery school that provides preschool childcare. You
paid $400 per month for the childcare. You can use the full
$2,400 you paid ($400 × 6 months) as qualified expenses
because it isn't more than the $3,000 yearly limit.
Reduced Dollar Limit
If you received dependent care benefits that you exclude
or deduct from your income, you must subtract that
amount from the dollar limit that applies to you. Your re-
duced dollar limit is figured on Form 2441, Part III. See
Dependent Care Benefits, earlier, for information on ex-
cluding or deducting these benefits.
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Example 1. George is a widower with one child and
earns $24,000 a year. He pays work-related expenses of
$2,900 for the care of his 4-year-old child and qualifies to
claim the credit for child and dependent care expenses.
His employer pays directly to his dependent care provider
an additional $1,000 under a qualified dependent care
benefit plan. This $1,000 is excluded from George's in-
come.
Although the dollar limit for his work-related expenses
is $3,000 (one qualifying person), George figures his
credit on only $2,000 of the $2,900 work-related expenses
he paid. This is because his dollar limit is reduced as
shown next.
George's Reduced Dollar Limit
1) Maximum allowable expenses for one
qualifying person ...................... $3,000
2) Minus: Dependent care benefits George
excludes from income ...................
−1,000
3) Reduced dollar limit on expenses George
can use for the credit ...................
$2,000
Example 2. Randall is married and both he and his
wife are employed. Each has earned income in excess of
$6,000. They have two children, Anne and Andy, ages 2
and 4, who attend a daycare facility licensed and regula-
ted by the state. Randall's work-related expenses are
$6,000 for the year.
Randall's employer has a dependent care assistance
program as part of its cafeteria plan, which allows employ-
ees to make pre-tax contributions to a dependent care
flexible spending arrangement. Randall has elected to
take the maximum $5,000 exclusion from his salary to
cover dependent care expenses through this program.
Although the dollar limit for his work-related expenses
is $6,000 (two or more qualifying persons), Randall figures
his credit on only $1,000 of the $6,000 work-related ex-
pense paid. This is because his dollar limit is reduced as
shown next.
Randall's Reduced Dollar Limit
1) Maximum allowable expenses for two
qualifying persons ...................... $6,000
2) Minus: Dependent care benefits selected
from employer's cafeteria plan and
excluded from Randall's income .............
−5,000
3) Reduced dollar limit on work-related expenses
Randall can use for the credit ...............
$1,000
Amount of Credit
To determine the amount of your credit, multiply your
work-related expenses (after applying the earned income
and dollar limits) by a percentage. This percentage de-
pends on your adjusted gross income shown on Form
1040, 1040-SR, or 1040-NR, line 11. The following table
shows the percentage to use based on adjusted gross in-
come.
IF your adjusted gross income is: THEN the
Over: But not over: percentage is:
$ 0 — $15,000 35%
15,000 — 17,000 34%
17,000 — 19,000 33%
19,000 — 21,000 32%
21,000 — 23,000 31%
23,000 — 25,000 30%
25,000 — 27,000 29%
27,000 — 29,000 28%
29,000 — 31,000 27%
31,000 — 33,000 26%
33,000 — 35,000 25%
35,000 — 37,000 24%
37,000 — 39,000 23%
39,000 — 41,000 22%
41,000 — 43,000 21%
43,000 — No limit 20%
To qualify for the credit, you must have one or more
qualifying persons. You should show the expenses for
each person on Form 2441, line 2, column (d). It is possi-
ble a qualifying person could have no expenses and a
second qualifying person could have expenses exceeding
$3,000. You should list -0- for the one person and the ac-
tual amount for the second person. The $6,000 limit that
applies to two or more qualifying persons would be used
to figure your credit unless you already excluded or de-
ducted, in Part III of Form 2441, certain dependent care
benefits paid to you (or on your behalf) by your employer.
Example. Roger and Megan Paris have two qualifying
children. Susan is 9 years old, and James is 15 years old
and is disabled. They received $1,000 of dependent care
benefits from Megan's employer during 2023, but they in-
curred a total of $19,500 of child and dependent care ex-
penses. They complete Part III of Form 2441 to exclude
the $1,000 from their taxable income (offsetting $1,000 of
their expenses). Roger and Megan continue to line 27 to
figure their credit using the remaining $18,500 of expen-
ses.
Line 30 tells them to complete line 2 without including
any dependent care benefits. They complete line 2 of
Form 2441, listing both Susan and James, as shown in the
Line 2 Example. They check the box in column (c) to indi-
cate that James is disabled.
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Line 2 Example
(a) Qualifying person's name (b) Qualifying person's
social security number
(c) Check here if the
qualifying person was
over age 12 and was
disabled. (see
instructions)
(d) Qualified expenses
you incurred and paid in
2023 for the person listed
in column (a)
First Last
Susan Paris 123-00-6789 [ ] -0-
James Paris 987-00-4321 [X] 18,500
All of Susan's expenses were covered by the $1,000 of
employer-provided dependent care benefits. However,
their son James has special needs and they paid $18,500
for his care. Line 3 imposes a $5,000 limit for two or more
children ($6,000 limit minus $1,000 already excluded from
income = $5,000) and Roger and Megan continue to com-
plete the form.
Even though line 2 indicates one of the Paris children
didn't have any dependent care expenses, it doesn't
change the fact that they had two qualifying children for
the purposes of Form 2441.
Payments for prior-year expenses. If you had work-re-
lated expenses in 2022 that you paid in 2023 and you
didn't claim a credit on the maximum amount of qualified
expenses for 2022, you may be able to increase the
amount of the credit you can take in 2023. To figure the
credit, complete Worksheet A in the Instructions for Form
2441. Enter the amount of the credit on Form 2441,
line 9b.
How To Claim the Credit
To claim the credit, you can file Form 1040, 1040-SR, or
1040-NR. You must complete Form 2441 and attach it to
your Form 1040, 1040-SR, or 1040-NR. Enter the credit
on your Schedule 3 (Form 1040), line 2. The amount of
credit you can claim is limited to your tax. You can't get a
refund for any part of the credit that is more than this limit.
For more information, see the Instructions for Form 2441.
Recordkeeping. You should keep records of your
work-related expenses and any dependent care
benefits you received. Also, if your dependent or
spouse isn't able to care for themselves, your records
should show both the nature and length of the disability.
Other records you should keep to support your claim for
the credit are described under Care Provider Identification
Test, earlier.
Do You Have Household
Employees?
If you pay someone to come to your home and care for
your dependent or spouse and you can control not only
what work is done, but how it is done, that person is prob-
ably a household employee and you may need to file
Schedule H (Form 1040), with your tax return and pay
RECORDS
household employment taxes. If you are a household em-
ployer, you will need an EIN. If the individuals who work in
your home are self-employed, you aren't liable for any of
the taxes discussed in this section. Self-employed per-
sons who are in business for themselves aren't household
employees. Usually, you aren't a household employer if
the person who cares for your dependent or spouse does
so at his or her home or place of business. For example,
nannies are generally household employees, while day-
care centers are not.
If you use a placement agency that exercises control
over what work is done and how it will be done by a baby-
sitter or companion who works in your home, the worker
isn't your employee. This control could include providing
rules of conduct and appearance and requiring regular re-
ports. In this case, you don't have to pay employment
taxes. But if an agency merely gives you a list of sitters
and you hire one from that list and pay the sitter directly,
the sitter may be your employee.
If you have a household employee, you may be subject
to:
1. Social security and Medicare taxes,
2. Federal unemployment tax, and
3. Federal income tax withholding.
Social security and Medicare taxes are generally withheld
from the employee's pay and matched by the employer.
Federal unemployment (FUTA) tax is paid by the employer
only and provides for payments of unemployment com-
pensation to workers who have lost their jobs. Federal in-
come tax is withheld from the employee's total pay if the
employee asks you to do so and you agree.
For more information on a household employer's tax re-
sponsibilities, see Pub. 926 and Schedule H (Form 1040)
and its instructions.
You must check either the “Yes” or “No” box on
Form 2441, line 1, column (d) to indicate whether
or not your care provider was your household em-
ployee during the year.
State employment tax. You may also have to pay state
unemployment tax for your household employee. Contact
your state unemployment tax office for information. You
should also find out whether you need to pay or collect
other state employment taxes or carry workers compensa-
tion insurance. For a list of state unemployment tax agen-
cies, visit the U.S. Department of Labor's website at
oui.doleta.gov/unemploy/agencies.asp.
TIP
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How To Get Tax Help
If you have questions about a tax issue; need help prepar-
ing your tax return; or want to download free publications,
forms, or instructions, go to IRS.gov to find resources that
can help you right away.
Preparing and filing your tax return. After receiving all
your wage and earnings statements (Forms W-2, W-2G,
1099-R, 1099-MISC, 1099-NEC, etc.); unemployment
compensation statements (by mail or in a digital format) or
other government payment statements (Form 1099-G);
and interest, dividend, and retirement statements from
banks and investment firms (Forms 1099), you have sev-
eral options to choose from to prepare and file your tax re-
turn. You can prepare the tax return yourself, see if you
qualify for free tax preparation, or hire a tax professional to
prepare your return.
Free options for tax preparation. Your options for pre-
paring and filing your return online or in your local com-
munity, if you qualify, include the following.
•
Free File. This program lets you prepare and file your
federal individual income tax return for free using soft-
ware or Free File Fillable Forms. However, state tax
preparation may not be available through Free File. Go
to IRS.gov/FreeFile to see if you qualify for free online
federal tax preparation, e-filing, and direct deposit or
payment options.
•
VITA. The Volunteer Income Tax Assistance (VITA)
program offers free tax help to people with
low-to-moderate incomes, persons with disabilities,
and limited-English-speaking taxpayers who need
help preparing their own tax returns. Go to IRS.gov/
VITA, download the free IRS2Go app, or call
800-906-9887 for information on free tax return prepa-
ration.
•
TCE. The Tax Counseling for the Elderly (TCE) pro-
gram offers free tax help for all taxpayers, particularly
those who are 60 years of age and older. TCE volun-
teers specialize in answering questions about pen-
sions and retirement-related issues unique to seniors.
Go to IRS.gov/TCE or download the free IRS2Go app
for information on free tax return preparation.
•
MilTax. Members of the U.S. Armed Forces and quali-
fied veterans may use MilTax, a free tax service of-
fered by the Department of Defense through Military
OneSource. For more information, go to
MilitaryOneSource (MilitaryOneSource.mil/MilTax).
Also, the IRS offers Free Fillable Forms, which can
be completed online and then e-filed regardless of in-
come.
Using online tools to help prepare your return. Go to
IRS.gov/Tools for the following.
•
The Earned Income Tax Credit Assistant (IRS.gov/
EITCAssistant) determines if you’re eligible for the
earned income credit (EIC).
•
The Online EIN Application (IRS.gov/EIN) helps you
get an employer identification number (EIN) at no
cost.
•
The Tax Withholding Estimator (IRS.gov/W4App)
makes it easier for you to estimate the federal income
tax you want your employer to withhold from your pay-
check. This is tax withholding. See how your withhold-
ing affects your refund, take-home pay, or tax due.
•
The First-Time Homebuyer Credit Account Look-up
(IRS.gov/HomeBuyer) tool provides information on
your repayments and account balance.
•
The Sales Tax Deduction Calculator (IRS.gov/
SalesTax) figures the amount you can claim if you
itemize deductions on Schedule A (Form 1040).
Getting answers to your tax questions. On
IRS.gov, you can get up-to-date information on
current events and changes in tax law.
•
IRS.gov/Help: A variety of tools to help you get an-
swers to some of the most common tax questions.
•
IRS.gov/ITA: The Interactive Tax Assistant, a tool that
will ask you questions and, based on your input, pro-
vide answers on a number of tax topics.
•
IRS.gov/Forms: Find forms, instructions, and publica-
tions. You will find details on the most recent tax
changes and interactive links to help you find answers
to your questions.
•
You may also be able to access tax information in your
e-filing software.
Need someone to prepare your tax return? There are
various types of tax return preparers, including enrolled
agents, certified public accountants (CPAs), accountants,
and many others who don’t have professional credentials.
If you choose to have someone prepare your tax return,
choose that preparer wisely. A paid tax preparer is:
•
Primarily responsible for the overall substantive accu-
racy of your return,
•
Required to sign the return, and
•
Required to include their preparer tax identification
number (PTIN).
Although the tax preparer always signs the return,
you're ultimately responsible for providing all the
information required for the preparer to accurately
prepare your return and for the accuracy of every item re-
ported on the return. Anyone paid to prepare tax returns
for others should have a thorough understanding of tax
matters. For more information on how to choose a tax pre-
parer, go to Tips for Choosing a Tax Preparer on IRS.gov.
Employers can register to use Business Services On-
line. The Social Security Administration (SSA) offers on-
line service at SSA.gov/employer for fast, free, and secure
W-2 filing options to CPAs, accountants, enrolled agents,
and individuals who process Form W-2, Wage and Tax
CAUTION
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Statement, and Form W-2c, Corrected Wage and Tax
Statement.
IRS social media. Go to IRS.gov/SocialMedia to see the
various social media tools the IRS uses to share the latest
information on tax changes, scam alerts, initiatives, prod-
ucts, and services. At the IRS, privacy and security are our
highest priority. We use these tools to share public infor-
mation with you. Don’t post your social security number
(SSN) or other confidential information on social media
sites. Always protect your identity when using any social
networking site.
The following IRS YouTube channels provide short, in-
formative videos on various tax-related topics in English,
Spanish, and ASL.
•
Youtube.com/irsvideos.
•
Youtube.com/irsvideosmultilingua.
•
Youtube.com/irsvideosASL.
Watching IRS videos. The IRS Video portal
(IRSVideos.gov) contains video and audio presentations
for individuals, small businesses, and tax professionals.
Online tax information in other languages. You can
find information on IRS.gov/MyLanguage if English isn’t
your native language.
Free Over-the-Phone Interpreter (OPI) Service. The
IRS is committed to serving taxpayers with limited-English
proficiency (LEP) by offering OPI services. The OPI Serv-
ice is a federally funded program and is available at Tax-
payer Assistance Centers (TACs), most IRS offices, and
every VITA/TCE tax return site. The OPI Service is acces-
sible in more than 350 languages.
Accessibility Helpline available for taxpayers with
disabilities. Taxpayers who need information about ac-
cessibility services can call 833-690-0598. The Accessi-
bility Helpline can answer questions related to current and
future accessibility products and services available in al-
ternative media formats (for example, braille, large print,
audio, etc.). The Accessibility Helpline does not have ac-
cess to your IRS account. For help with tax law, refunds, or
account-related issues, go to IRS.gov/LetUsHelp.
Note. Form 9000, Alternative Media Preference, or
Form 9000(SP) allows you to elect to receive certain types
of written correspondence in the following formats.
•
Standard Print.
•
Large Print.
•
Braille.
•
Audio (MP3).
•
Plain Text File (TXT).
•
Braille Ready File (BRF).
Disasters. Go to IRS.gov/DisasterRelief to review the
available disaster tax relief.
Getting tax forms and publications. Go to IRS.gov/
Forms to view, download, or print all the forms, instruc-
tions, and publications you may need. Or, you can go to
IRS.gov/OrderForms to place an order.
Getting tax publications and instructions in eBook
format. Download and view most tax publications and in-
structions (including the Instructions for Form 1040) on
mobile devices as eBooks at IRS.gov/eBooks.
IRS eBooks have been tested using Apple's iBooks for
iPad. Our eBooks haven’t been tested on other dedicated
eBook readers, and eBook functionality may not operate
as intended.
Access your online account (individual taxpayers
only). Go to IRS.gov/Account to securely access infor-
mation about your federal tax account.
•
View the amount you owe and a breakdown by tax
year.
•
See payment plan details or apply for a new payment
plan.
•
Make a payment or view 5 years of payment history
and any pending or scheduled payments.
•
Access your tax records, including key data from your
most recent tax return, and transcripts.
•
View digital copies of select notices from the IRS.
•
Approve or reject authorization requests from tax pro-
fessionals.
•
View your address on file or manage your communica-
tion preferences.
Get a transcript of your return. With an online account,
you can access a variety of information to help you during
the filing season. You can get a transcript, review your
most recently filed tax return, and get your adjusted gross
income. Create or access your online account at IRS.gov/
Account.
Tax Pro Account. This tool lets your tax professional
submit an authorization request to access your individual
taxpayer IRS online account. For more information, go to
IRS.gov/TaxProAccount.
Using direct deposit. The safest and easiest way to re-
ceive a tax refund is to e-file and choose direct deposit,
which securely and electronically transfers your refund di-
rectly into your financial account. Direct deposit also
avoids the possibility that your check could be lost, stolen,
destroyed, or returned undeliverable to the IRS. Eight in
10 taxpayers use direct deposit to receive their refunds. If
you don’t have a bank account, go to IRS.gov/
DirectDeposit for more information on where to find a bank
or credit union that can open an account online.
Reporting and resolving your tax-related identity
theft issues.
•
Tax-related identity theft happens when someone
steals your personal information to commit tax fraud.
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Your taxes can be affected if your SSN is used to file a
fraudulent return or to claim a refund or credit.
•
The IRS doesn’t initiate contact with taxpayers by
email, text messages (including shortened links), tele-
phone calls, or social media channels to request or
verify personal or financial information. This includes
requests for personal identification numbers (PINs),
passwords, or similar information for credit cards,
banks, or other financial accounts.
•
Go to IRS.gov/IdentityTheft, the IRS Identity Theft
Central webpage, for information on identity theft and
data security protection for taxpayers, tax professio-
nals, and businesses. If your SSN has been lost or
stolen or you suspect you’re a victim of tax-related
identity theft, you can learn what steps you should
take.
•
Get an Identity Protection PIN (IP PIN). IP PINs are
six-digit numbers assigned to taxpayers to help pre-
vent the misuse of their SSNs on fraudulent federal in-
come tax returns. When you have an IP PIN, it pre-
vents someone else from filing a tax return with your
SSN. To learn more, go to IRS.gov/IPPIN.
Ways to check on the status of your refund.
•
Go to IRS.gov/Refunds.
•
Download the official IRS2Go app to your mobile de-
vice to check your refund status.
•
Call the automated refund hotline at 800-829-1954.
The IRS can’t issue refunds before mid-February
for returns that claimed the EIC or the additional
child tax credit (ACTC). This applies to the entire
refund, not just the portion associated with these credits.
Making a tax payment. Payments of U.S. tax must be
remitted to the IRS in U.S. dollars. Digital assets are not
accepted. Go to IRS.gov/Payments for information on how
to make a payment using any of the following options.
•
IRS Direct Pay: Pay your individual tax bill or estimated
tax payment directly from your checking or savings ac-
count at no cost to you.
•
Debit Card, Credit Card, or Digital Wallet: Choose an
approved payment processor to pay online or by
phone.
•
Electronic Funds Withdrawal: Schedule a payment
when filing your federal taxes using tax return prepara-
tion software or through a tax professional.
•
Electronic Federal Tax Payment System: Best option
for businesses. Enrollment is required.
•
Check or Money Order: Mail your payment to the ad-
dress listed on the notice or instructions.
•
Cash: You may be able to pay your taxes with cash at
a participating retail store.
•
Same-Day Wire: You may be able to do same-day
wire from your financial institution. Contact your finan-
cial institution for availability, cost, and time frames.
CAUTION
!
Note. The IRS uses the latest encryption technology to
ensure that the electronic payments you make online, by
phone, or from a mobile device using the IRS2Go app are
safe and secure. Paying electronically is quick, easy, and
faster than mailing in a check or money order.
What if I can’t pay now? Go to IRS.gov/Payments for
more information about your options.
•
Apply for an online payment agreement (IRS.gov/
OPA) to meet your tax obligation in monthly install-
ments if you can’t pay your taxes in full today. Once
you complete the online process, you will receive im-
mediate notification of whether your agreement has
been approved.
•
Use the Offer in Compromise Pre-Qualifier to see if
you can settle your tax debt for less than the full
amount you owe. For more information on the Offer in
Compromise program, go to IRS.gov/OIC.
Filing an amended return. Go to IRS.gov/Form1040X
for information and updates.
Checking the status of your amended return. Go to
IRS.gov/WMAR to track the status of Form 1040-X amen-
ded returns.
It can take up to 3 weeks from the date you filed
your amended return for it to show up in our sys-
tem, and processing it can take up to 16 weeks.
Understanding an IRS notice or letter you’ve re-
ceived. Go to IRS.gov/Notices to find additional informa-
tion about responding to an IRS notice or letter.
Responding to an IRS notice or letter. You can now
upload responses to all notices and letters using the
Document Upload Tool. For notices that require additional
action, taxpayers will be redirected appropriately on
IRS.gov to take further action. To learn more about the
tool, go to IRS.gov/Upload.
Note. You can use Schedule LEP (Form 1040), Re-
quest for Change in Language Preference, to state a pref-
erence to receive notices, letters, or other written commu-
nications from the IRS in an alternative language. You may
not immediately receive written communications in the re-
quested language. The IRS’s commitment to LEP taxpay-
ers is part of a multi-year timeline that began providing
translations in 2023. You will continue to receive communi-
cations, including notices and letters, in English until they
are translated to your preferred language.
Contacting your local TAC. Keep in mind, many ques-
tions can be answered on IRS.gov without visiting a TAC.
Go to IRS.gov/LetUsHelp for the topics people ask about
most. If you still need help, TACs provide tax help when a
tax issue can’t be handled online or by phone. All TACs
now provide service by appointment, so you’ll know in ad-
vance that you can get the service you need without long
wait times. Before you visit, go to IRS.gov/TACLocator to
find the nearest TAC and to check hours, available serv-
ices, and appointment options. Or, on the IRS2Go app,
CAUTION
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under the Stay Connected tab, choose the Contact Us op-
tion and click on “Local Offices.”
The Taxpayer Advocate Service (TAS)
Is Here To Help You
What Is TAS?
TAS is an independent organization within the IRS that
helps taxpayers and protects taxpayer rights. TAS strives
to ensure that every taxpayer is treated fairly and that you
know and understand your rights under the Taxpayer Bill
of Rights.
How Can You Learn About Your Taxpayer
Rights?
The Taxpayer Bill of Rights describes 10 basic rights that
all taxpayers have when dealing with the IRS. Go to
TaxpayerAdvocate.IRS.gov to help you understand what
these rights mean to you and how they apply. These are
your rights. Know them. Use them.
What Can TAS Do for You?
TAS can help you resolve problems that you can’t resolve
with the IRS. And their service is free. If you qualify for
their assistance, you will be assigned to one advocate
who will work with you throughout the process and will do
everything possible to resolve your issue. TAS can help
you if:
•
Your problem is causing financial difficulty for you,
your family, or your business;
•
You face (or your business is facing) an immediate
threat of adverse action; or
•
You’ve tried repeatedly to contact the IRS but no one
has responded, or the IRS hasn’t responded by the
date promised.
How Can You Reach TAS?
TAS has offices in every state, the District of Columbia,
and Puerto Rico. To find your advocate’s number:
•
Go to TaxpayerAdvocate.IRS.gov/Contact-Us;
•
Download Pub. 1546, The Taxpayer Advocate Service
Is Your Voice at the IRS, available at IRS.gov/pub/irs-
pdf/p1546.pdf;
•
Call the IRS toll free at 800-TAX-FORM
(800-829-3676) to order a copy of Pub. 1546;
•
Check your local directory; or
•
Call TAS toll free at 877-777-4778.
How Else Does TAS Help Taxpayers?
TAS works to resolve large-scale problems that affect
many taxpayers. If you know of one of these broad issues,
report it to TAS at IRS.gov/SAMS. Be sure to not include
any personal taxpayer information.
Low Income Taxpayer Clinics (LITCs)
LITCs are independent from the IRS and TAS. LITCs rep-
resent individuals whose income is below a certain level
and who need to resolve tax problems with the IRS. LITCs
can represent taxpayers in audits, appeals, and tax collec-
tion disputes before the IRS and in court. In addition,
LITCs can provide information about taxpayer rights and
responsibilities in different languages for individuals who
speak English as a second language. Services are offered
for free or a small fee. For more information or to find an
LITC near you, go to the LITC page at
TaxpayerAdvocate.IRS.gov/LITC or see IRS Pub. 4134,
Low Income Taxpayer Clinic List, at IRS.gov/pub/irs-pdf/
p4134.pdf.
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To help us develop a more useful index, please let us know if you have ideas for index entries.
See “Comments and Suggestions” in the “Introduction” for the ways you can reach us.
Index
A
Adoption:
Taxpayer identification number 4
Aliens 3
Amount of credit 13
Are These Work-Related
Expenses? 6-8
Partly work-related expenses 8
Assistance (See Tax help)
C
Calculation of credit 10
Camp:
Day 7
Overnight 7
Care:
Dependent care benefits 2, 10
Employer-provided benefits 10
Outside home 7
Provider identification 9
Qualifying person 7
Care Provider Identification Test 2,
9, 10
Children:
Divorced or separated parents 4
Physically or mentally disabled 3
Under age 13 3
Work-related expense payments to
relatives 8
Church employee 11
Claiming of credit 14
Tests to claim credit 2
Clergy 11
Community property 11
D
Death of spouse 9
Dependent care benefits 2, 10
Dependent care centers 7
Dependent defined 3
Dependents (See Who Is a Qualifying
Person?)
Deposits 8
Disabilities, persons with:
Dependents 3
Physically or mentally not able to
care for self 3
Spouse 3, 6, 12
Divorced parents 4
Dollar limit 12
Reduced dollar limit 2, 12
Domestic help 8
Due diligence 10
E
Earned income:
Dependent care benefits 11
For figuring credit 4
Limit on 11
Net loss 11
Nonworking spouse 6
Self-employment earnings 11
Statutory employees 11
What is not 4
Earned income test 6
Determination 2
Education expenses 7
Employer-provided dependent care
benefits 2, 10
Employment taxes 2, 8, 14
Exclusion from income:
Employer-provided dependent care
benefits 2, 11
Expenses 10
(See also Work-related expenses)
Education 7
Medical 10
Not for care 7
Prepaid 10
Reimbursed 10
F
Fees 8
Figures 2
Figuring credit 10
Earned income 4
Filing status:
Tests to claim credit 2
What’s Your Filing Status? 8
Form 1040, 1040-SR, or 1040-NR:
Claiming the credit 2
Form 4029 4
Form 4361 4
Form W-10 9
Form W-2:
Dependent care benefits 11
Form W-7 3
H
Household services 7, 8
Employment taxes 14
Housekeepers 8
I
Identification of provider 9, 10
Individual taxpayer identification
numbers (ITINs):
For aliens 3
Inmate 6
L
Limits:
Dollar 12
Earned income 11
Reduced dollar 2, 12
Looking for work 6
Losses 11
M
Married and living apart 8
Meals and lodging for
housekeeper 8
Medical expenses 10
Minister 11
Missing children, photographs of 2
N
Not able to care for self:
Qualifying person test 3
Spouse 3, 6, 12
O
Outside of home care 7
P
Part of year:
Persons qualifying for 3
Work or looking for work 6
Part-time work 7
Prepaid expenses 10
Prisoner 6
Publications (See Tax help)
Q
Qualifying child 3
Qualifying person:
Care for 7
Expenses not for care 7
R
Recordkeeping requirements 14
Reduced dollar limit 12
Tests to claim credit 2
Refusal by provider to give
information 10
Reimbursed expenses 10
Relatives, payments to 2, 8
Religious faiths opposed to social
security programs 4
S
School expenses 7
Self-employed persons 11
Separated parents 4, 8
Separated spouse 11
Sick days 6
Social security 14
(See also Employment taxes)
Religious faiths opposed to 4
Social security numbers (SSNs) 9
Spouse:
Both spouses qualifying 12
Death of 9
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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
Nonworking, earned income 6
Not able to care for self 3, 6, 12
Qualifying person 3
Separated 11
Student 6, 12
Surviving 11
Working 12
Students:
Full-time 6
Spouse 6, 12
T
Tax help 15
Taxes on wages (See Employment
taxes)
Taxpayer identification numbers
(TINs) 1, 3
Adoption 4
Aliens 3
Providers 9
Temporary absence 6
Tests to claim credit 2, 11
Determination 2
Earned income 4
Qualifying persons 3
Work-related expenses 6
Transportation 7
U
Unearned income 4
V
Vacation 6
Volunteer work 6
W
Wages, taxes on (See Employment
taxes)
What’s Your Filing Status? 8, 9
Tests to claim credit 2
Who Is a qualifying person? 3, 4
Tests to claim credit 2
Withholding:
Federal income tax 14
Work-related expense test:
Tests to claim credit 2
Work-related expenses:
Earned income limit 11
Figuring of credit 10
Medical 10
Paid following year 10, 14
Partly work-related expenses 8
Prepaid 10
Recordkeeping 14
Reimbursed 10
Y
You Must Have Earned Income 4
20 Publication 503 (2023)
