Child & Dependent Care Tax Credit

Overview

The Child and Dependent Care Tax Credit (CDCTC) is the only provision of the tax code specifically created to help working parents pay for child care.

The CDCTC helps millions of working families cover a portion of their child care costs. Parents can claim a percentage of child care expenses to help cover the cost of care for children under the age of 13 or adult dependents. In 2022, more than 5.7 million families nationwide benefitted from this important tax benefit. 

In July 2025, the Child and Dependent Care Tax Credit (CDCTC) was permanently expanded for the first time since 2001. Under the new law, families with the lowest incomes are now eligible to receive up to 50% of their child care expenses back as a tax credit. This expansion is expected to benefit four million families, reducing their taxable income by an average of $2,100 — a $900 increase from the previous credit.