2020 Child and Dependent Care Credit
For 2020, 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 2020-01-01Source: Publication 503 (2020), Child and Dependent Care Expenses (IRS)Verified 2026-08-29
Compared with 2019
Every figure on this page is unchanged from 2019.
| Item | 2019 | 2020 | 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 care expenses in 2020 for a qualifying person so they could work or look for work
What changed this year, and why
The 2020 Child and Dependent Care Credit allows a taxpayer to claim a credit for work-related care expenses paid for a qualifying person. The maximum credit rate is 35%, and the expenses that can be used to figure the credit are capped at $3,000 for one qualifying person or $6,000 for two or more qualifying persons.
Common questions
- What is the Child and Dependent Care Credit?
- The credit is a percentage of work-related care expenses you paid for a qualifying person so you could work or look for work. The percentage starts at 35% and decreases as income rises.
- Is there a limit on the expenses I can use to figure the credit?
- The expenses you can use to figure the credit are limited to $3,000 for one qualifying person or $6,000 for two or more qualifying persons.
The credit cannot exceed what you earned
When you compute the Child and Dependent Care Credit, the work-related expenses you count cannot exceed the earned income you received during the year. If you are single at year-end, the cap is your own earned income. If you are married at year-end, the cap is the lesser of your earned income or your spouse's earned income for the full year, even if you were married for only part of the year. In other words, the credit base is limited to what you (and, if married, your spouse) actually brought in from work. For 2020, even if your qualifying care costs are higher, you cannot use expenses above your earned income to figure the credit. The maximum rate applied to the allowed expenses is 35%, and the expense limit is $3,000 for one qualifying person or $6,000 for two or more, but the earned income limit can further reduce the amount you are able to use.
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.
Publication 503 (2020), Child and Dependent Care Expenses (IRS)
The exception for a student or disabled spouse
Normally the credit is limited by what you or your spouse earned during the year. But if your spouse was a full-time student or was physically or mentally unable to care for himself or herself, your spouse is treated as having earned income for each such month. This deemed income lets you still meet the earned-income requirement even though your spouse may not have actually worked. The spouse must also have lived with you for more than half the year to qualify for this rule. If you are filing a joint return, the same rule applies to you: you too can be treated as having earned income for any month you were a full-time student or not able to care for yourself. For 2020, the credit rate can be as high as 35%, and the expense limit is $3,000 for one qualifying person or $6,000 for two or more, but the earned income limit still caps the expenses you can use unless this student or disabled-spouse rule applies.
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 himself or herself. (Your spouse must also live with you for more than half the year.)
Publication 503 (2020), Child and Dependent Care Expenses (IRS)
Married couples generally must file jointly
If you are married at the end of the tax year, you must file a joint return to claim the Child and Dependent Care Credit. Your filing status may be single, head of household, or qualifying widow(er) with dependent child, but a married couple must generally file jointly. There are exceptions for certain married taxpayers who are legally separated or living apart, as described under the filing-status rules, but absent such an exception a joint return is required. This means that a married person filing separately cannot take the credit. The rule applies at the level of filing status; it is one of several tests that must be satisfied before any credit is allowed. The other limits on the credit - the 35% maximum rate, the $3,000 expense limit for one qualifying person, and the $6,000 expense limit for two or more qualifying persons - come into play only after you have satisfied this filing-status requirement.
5. Joint Return Test. Your filing status may be single, head of household, or qualifying widow(er) with de- pendent child. If you are married, you must file a joint return, unless an exception applies to you.
Publication 503 (2020), Child and Dependent Care Expenses (IRS)
You must name the provider, or show due diligence
To claim the credit you must identify every person or organization that provided care for your qualifying child or dependent. The identification is made on Form 2441, Part I, where you must supply each 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, it is the employer identification number. There is an exception for tax-exempt organizations such as churches and schools: you may enter "Tax-Exempt" in place of a number. If you do not have any care providers at all, you enter "none" on the form. This requirement exists so the IRS can verify that the care expenses are legitimate. The provider-identification test is one of several tests that must all be met before the credit is allowed, alongside the earned income limit, the dollar limit, the joint return test, and the other qualifying-person requirements.
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.
Publication 503 (2020), Child and Dependent Care Expenses (IRS)
Employer benefits shrink the expense limit
If your employer provides dependent care benefits that you exclude or deduct from your income - such as amounts paid through a dependent care flexible spending account - you must reduce the dollar limit on expenses you can use for the credit. The excluded or deducted benefit amount is subtracted from the otherwise applicable dollar limit. The dollar limit is $3,000 for a single qualifying person or $6,000 for multiple qualifying persons. The reduced figure is the maximum expense amount you can use to figure the credit. This reduced dollar limit is calculated on Form 2441, Part III. The rule prevents taxpayers from receiving both a tax-free employer benefit and a full credit on expenses that were already subsidized by the employer. For 2020, the credit itself is calculated at a maximum rate of 35% applied to the reduced expense base.
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.
Publication 503 (2020), 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 (2020), 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.