2017 Child and Dependent Care Credit
For 2017, the Child and Dependent Care Credit is 35% (Maximum rate), $3,000 (Expense limit, one person) and $6,000 (Expense limit, two or more people).
Effective 2017-01-01Source: Publication 503 (2017), Child and Dependent Care Expenses (IRS)Verified 2026-08-29
Compared with 2016
Every figure on this page is unchanged from 2016.
| Item | 2016 | 2017 | Change |
|---|---|---|---|
| Maximum rate | 35% | 35% | +0% (+0.0%) |
| Expense limit, one person | $3,000 | $3,000 | +$0 (+0.0%) |
| Expense limit, two or more people | $6,000 | $6,000 | +$0 (+0.0%) |
Who it applies to
Taxpayers who paid work-related expenses in 2017 for the care of a qualifying person (a dependent child under age 13, a disabled spouse, or a disabled dependent) and who meet the earned income and other eligibility tests described in IRS Publication 503.
What changed this year, and why
For 2017, the Child and Dependent Care Credit allows eligible taxpayers to claim a credit for work-related care expenses paid for one or more qualifying persons. The credit is calculated as a percentage of qualifying expenses, subject to dollar caps and an income-based rate schedule.
Common questions
- What is the maximum expense limit for the credit?
- For 2017, the maximum qualifying expenses are $3,000 for one qualifying person or $6,000 for two or more qualifying persons. These are yearly limits that do not change based on how long during the year the person qualifies.
- What percentage of expenses can be claimed as a credit?
- The credit rate is as high as 35% of qualifying expenses, depending on the taxpayer's adjusted gross income. The rate decreases as income rises.
The credit cannot exceed what you earned
The Earned Income Limit caps the work-related expenses you can use to figure your credit at the amount you actually earned during the year. If you are single at the end of the year, the limit is your own earned income. If you are married at the end of the year, the limit is the smaller of your earned income or your spouse's earned income for the year. For this rule, you count your spouse's earned income for the entire year, even if you were married for only part of the year. If you are legally separated or married and living apart from your spouse, you are treated as not married for purposes of this limit and use only your own income. Surviving spouses filing a joint return may, but are not required to, take into account the earned income of the spouse who died during the year. This earned income cap works together with the dollar limits of $3,000 for one qualifying person or $6,000 for two or more qualifying persons, and the maximum credit rate of 35%.
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.
Publication 503 (2017), Child and Dependent Care Expenses (IRS)
The exception for a student or disabled spouse
When figuring the child and dependent care credit, a spouse who is a full-time student or who is physically or mentally unable to care for themselves is treated as having earned income for any month they meet that condition. This rule allows a working spouse to claim the credit even when the other spouse had no actual wages, by imputing a monthly earned income amount for the nonworking spouse. The nonworking spouse must also live with you for more than half the year. If both spouses are students or disabled in the same month, only one spouse can be treated as having earned income for that month. The imputed earned income for a full-time student or disabled spouse is figured at a set monthly rate. This exception works within the overall credit structure, where the maximum rate is 35%, expenses are limited to $3,000 for one qualifying person, or $6,000 for two or more qualifying persons.
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 himself or herself. (Your spouse also must live with you for more than half the year.)
Publication 503 (2017), Child and Dependent Care Expenses (IRS)
Married couples generally must file jointly
To claim the child and dependent care credit, married taxpayers generally must file a joint return. Your filing status may be single, head of household, or qualifying widow(er) with dependent child. If you are married, you must file a joint return, unless an exception applies to you. This rule prevents married couples from filing separately and claiming the credit. The exception applies to taxpayers who are legally separated or married and living apart from their spouse under certain conditions, allowing them to file as head of household and still qualify for the credit without a joint return. If your spouse died during the year and you do not remarry before the end of the year, you generally must file a joint return to take the credit. The credit itself is figured using a maximum rate of 35%, with expense limits of $3,000 for one qualifying person or $6,000 for two or more qualifying persons.
If you are married, you must file a joint return, unless an exception applies to you.
Publication 503 (2017), Child and Dependent Care Expenses (IRS)
You must name the provider, or show due diligence
To claim the child and dependent care credit, you must identify all persons or organizations that provided care for your child or dependent. You use Form 2441, Part I, to show this information. For each care provider, you must provide the provider's name, address, and taxpayer identification number. If the provider is an individual, the taxpayer identification number is their social security number or individual taxpayer identification number. If the provider is an organization, you provide the employer identification number. You do not have to provide a taxpayer identification number if the care provider is a tax-exempt organization such as a church or school; in that case, enter "Tax-Exempt." If you cannot provide all of the required information or the information is incorrect, you must be able to show that you used due diligence in trying to obtain the necessary information. The credit is figured using a maximum rate of 35%, with expense limits of $3,000 for one qualifying person or $6,000 for two or more qualifying persons.
You must identify all persons or organizations that provide care for your child or dependent.
Publication 503 (2017), Child and Dependent Care Expenses (IRS)
Employer benefits shrink the expense limit
If you received dependent care benefits through an employer plan that you exclude or deduct from your income, you must subtract that amount from the dollar limit that applies to you. Your reduced dollar limit is figured on Form 2441, Part III. The normal dollar limit is $3,000 for one qualifying person or $6,000 for two or more qualifying persons. Any dependent care benefits you excluded or deducted come off the top of that limit, shrinking the pool of expenses available for the credit. For instance, a taxpayer with one qualifying person whose employer paid part of the child care under a qualified plan will figure the credit on the remaining expenses only, up to the reduced limit. This prevents a double tax benefit from both excluding employer-provided care assistance and claiming the full credit on out-of-pocket expenses. The credit rate can be as high as 35%, applied to the expenses allowed under the reduced 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.
Publication 503 (2017), Child and Dependent Care Expenses (IRS)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
Publication 503 (2017), Child and Dependent Care Expenses (IRS)
- Maximum rate
The credit can be up to 35% of your expenses.
- Expense limit, one person
This limit is $3,000 for one qualifying person, or $6,000 for two or more qualifying persons.
- Expense limit, two or more people
If you paid work-related expenses for the care of two or more qualifying persons, the applicable dollar limit is $6,000.