Childcare Tax Credit Information
A tax credit is a dollar-for-dollar reduction in taxes owed. Some credits are refundable – taxes can be reduced to the point that a taxpayer receives a refund instead of paying taxes. A tax credit is even more valuable to families than a tax deduction.
Under current federal law eligible families can claim tax credits* up to:
- $2,100 from the federal Child and Dependent Care Tax Credit
*up to $1,050 for each of your first two children - $1,000 per child from the federal Child Tax Credit; and
- $5,657 from the federal Earned Income Tax Credit.
*The exact amount depends on your income - Many states provide tax credits in addition to the federal tax credits.
Check with your accountant or tax preparation service for more details.
Resources and Links
Detailed information on federal tax credits for parents is available from:
- The Internal Revenue Service
Call (800) TAX-1040 or (800) 829-1040 - Tax Information for Parents
- Child and Dependent Care Tax Credit
- Child Tax Credit
- Earned Income Tax Credit
- The National Women's Law Center
* Credit amounts may change from year-to-year, are usually dependent on total family income and size, and may be subject to maximum income or child care spending limitations. Consult your tax advisor, the IRS, and state revenue officials to confirm your eligibility.
What our parents are saying:
"Our daughter joined the Kidz Quarterz family at the age of 6 weeks. We searched for and toured many daycare facilities and feel so lucky to have found Kidz Quarterz. The staff and teachers are very special and have a passion for caring, nurturing and help the kids grow in many ways. We wouldn't recommend any other facility to anyone. "
Courtney R, New Cumberland, Pa
"Our daughter joined the Kidz Quarterz family at the age of 6 weeks. We searched for and toured many daycare facilities and feel so lucky to have found Kidz Quarterz. The staff and teachers are very special and have a passion for caring, nurturing and help the kids grow in many ways. We wouldn't recommend any other facility to anyone. "
Courtney R, New Cumberland, Pa