2023 Child and Dependent Care Credit
For 2023, the Child and Dependent Care Credit figures are 35% (Maximum rate), $3,000 (Expense limit, one person) and $6,000 (Expense limit, two or more people).
Effective 2023-01-01Source: Publication 503 (2023), Child and Dependent Care Expenses (IRS)Verified 2026-09-02
Compared with 2022
Every figure on this page is unchanged from 2022.
| Item | 2022 | 2023 | 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 for a qualifying person in 2023
What changed this year, and why
The 2023 Child and Dependent Care Credit allows taxpayers to claim a credit for care expenses paid for a qualifying person so the taxpayer (or spouse, if filing jointly) can work or look for work. A qualifying person includes a dependent under age 13 or a spouse or dependent who cannot care for themselves.
Common questions
- What is the maximum credit rate for 2023?
- The credit can be up to 35% of qualifying work-related expenses. The actual percentage decreases as adjusted gross income rises.
- How much in expenses can I count toward the credit?
- The expense limit is $3,000 if you had one qualifying person during the year, or $6,000 if you had two or more qualifying persons. These are yearly limits.
The credit cannot exceed what you earned
For the 2023 Child and Dependent Care Credit, the dollar amount of work-related expenses you can use to figure the credit is capped by what you (and your spouse, if married) actually earned during the year. If you are single at the end of the year, your work-related expenses for credit purposes cannot exceed your own earned income. If you are married at the end of the year, the expenses are limited to the smaller of your earned income or your spouse's earned income. For this married-person rule, you must use your spouse's earned income for the entire year even if you were married for only part of the year. Special situations apply for separated spouses (who are treated as not married for this limit, using only their own income) and surviving spouses filing jointly (who may, but are not required to, take into account the deceased spouse's earned income). This earned income ceiling applies after the expense limits of $3,000 for one qualifying person or $6,000 for two or more qualifying persons have been taken into account, and before the maximum rate of 35% is applied to determine the credit amount.
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.
Publication 503 (2023), Child and Dependent Care Expenses (IRS)
The exception for a student or disabled spouse
Normally both spouses must have earned income for the credit to apply. However, if one spouse did not work during the year, that spouse can still be treated as having earned income for any month when they were either a full-time student or physically or mentally unable to care for themselves. The spouse must also live with the taxpayer for more than half the year. This deemed-earned-income rule applies on a joint return and can also apply to the taxpayer themselves. The earned income attributed to the nonworking spouse is computed at a statutory monthly amount for each qualifying month. This rule can be used for only one spouse in any given month - if both spouses were students or disabled in the same month, only one of them is treated as having earned income that month. The credit is still subject to the overall expense limits of $3,000 for one qualifying person or $6,000 for two or more, and the maximum rate of 35% applies to the resulting amount.
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.
Publication 503 (2023), Child and Dependent Care Expenses (IRS)
Married couples generally must file jointly
If a married couple wants to claim the credit, they generally must file a joint return. This requirement applies even when only one spouse worked or paid the care expenses. The only exception is for certain married taxpayers who live apart from their spouse and meet the conditions to file as head of household instead. A surviving spouse who lost their spouse during the year generally must file jointly, unless they remarried before year-end. If the couple files separately, they cannot claim the credit at all. The joint return test is one of several tests listed in the publication; all must be satisfied. This filing-status requirement is separate from the earned-income limit, the dollar limits of $3,000 for one qualifying person or $6,000 for two or more, and the maximum rate of 35% used to calculate the final credit.
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.
Publication 503 (2023), 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. This information is reported on Form 2441, Part I. For each provider you must supply the 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. Tax-exempt organizations (such as churches or schools) are an exception - you enter "Tax-Exempt" instead of a number. If you cannot provide complete or correct information, you must demonstrate that you exercised due diligence in trying to obtain it. You can request the information using Form W-10 or through other sources listed in its instructions. Failure to identify a provider - or to show due diligence - may disqualify the related expenses from the credit. These expenses are also subject to the overall limits of $3,000 for one qualifying person or $6,000 for two or more, and the maximum rate of 35%.
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 (2023), Child and Dependent Care Expenses (IRS)
Employer benefits shrink the expense limit
For the 2023 child and dependent care credit under federal tax rules, taxpayers who receive dependent care benefits through an employer plan - such as a flexible spending arrangement or a cafeteria plan - must reduce the expense limit they can use to figure the credit. The IRS requires subtracting the amount excluded or deducted from income as a dependent care benefit from the dollar limit that would otherwise apply: $3,000 for one qualifying person or $6,000 for two or more. The remaining balance is the amount of work-related expenses eligible for the credit. The reduced limit is calculated on Form 2441, Part III. If the employer benefits equal or exceed the applicable limit, no credit is available because there are no qualifying expenses left to claim. The credit rate itself can be as high as 35%, but it applies only to the reduced expense base after the benefit exclusion is taken into account.
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 (2023), Child and Dependent Care Expenses (IRS)
Expenses count in the year you pay them, not the year care happened
The credit is based on work-related expenses you actually paid during 2023, regardless of when the care took place. If you paid for care received in 2022 during 2023, those payments count toward your 2023 credit, not your 2022 credit. Conversely, if you had care expenses in 2023 but did not pay them until 2024, you cannot count them on your 2023 return; you may be able to claim them on your 2024 return instead. The maximum amount of qualifying expenses you can use is $3,000 for one qualifying person or $6,000 for two or more qualifying persons. The credit percentage can be as high as 35% of those allowed expenses, depending on your income. If you had 2022 expenses that you paid in 2023 and did not already claim the maximum qualified expenses for 2022, you may be able to increase your 2023 credit by completing Worksheet A in the Instructions for 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.
Publication 503 (2023), Child and Dependent Care Expenses (IRS)
The credit can only offset tax you owe, not add to your refund
The Child and Dependent Care Credit is nonrefundable, meaning it can only reduce the amount of federal income tax you owe for the year. It cannot create or increase a refund if the credit exceeds your total tax liability. If your calculated credit is larger than the tax you owe, the excess amount is lost and cannot be carried forward to future tax years or refunded to you. The credit itself is calculated based on qualifying work-related expenses, which are limited to $3,000 for one qualifying person or $6,000 for two or more qualifying persons. The percentage applied to those expenses can be as high as 35%, depending on your adjusted gross income. Even if you qualify for the maximum credit amount based on your expenses and income, you will only receive the lesser of that credit amount or the total tax you owe for 2023.
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.
Publication 503 (2023), Child and Dependent Care Expenses (IRS)
Wrong or missing provider information can cost you the credit
When you claim the Child and Dependent Care Credit, you must provide accurate information about your care provider, including their name, address, and taxpayer identification number. If the provider information you report on your tax return is incorrect or incomplete, the IRS may disallow your credit entirely. However, if you can demonstrate that you exercised due diligence in attempting to obtain and verify the provider's information, you may still claim the credit even if the information turns out to be wrong. You can show due diligence by obtaining and keeping a completed Form W-10 from the provider or by maintaining other documentation such as a statement with the provider's name, address, and taxpayer identification number, or a recently printed invoice showing this information. The credit can be based on up to $3,000 in expenses for one qualifying person or $6,000 for two or more qualifying persons, with a maximum credit rate of 35%.
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.
Publication 503 (2023), 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 (2023), Child and Dependent Care Expenses (IRS)
- Maximum rate
The credit can be up to 35% of your employ-
- Expense limit, one person
This limit is $3,000 if you had one qualifying person, or $6,000 if you had two or more qualifying persons.
- Expense limit, two or more people
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.