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 working parents keep more of what they earn and offsets the high cost of child care. 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. The credit reduces parents’ taxable income by a maximum of $1,050 for one dependent and $2,100 for two or more dependents. On average, families receive less than $600.
Reforming the CDCTC would allow this tax provision to better support families.
Top
Resources
The First Five Things To Know About: The Federal Tax Code and Child Care
Child care is not a luxury for American families – it’s a necessity. Yet the high costs associated with quality child care are rapidly outpacing most other expenses, including the …
Child and Dependent Care Tax Credit (CDCTC): Overview
Millions of American families are struggling to find quality, reliable, affordable child care they can depend on. This is having a devastating impact on our youngest learners, working families, and …
TOPLINES: Child Care in the 2025 Tax Reconciliation Package
The final version of the 2025 tax reconciliation package (also known as the One Big Beautiful Bill Act – H.R.1) was signed into law on July 4th, 2025. The bill …
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FFYF’s Sarah Rittling on Child Care Tax Enhancements in the Final Reconciliation Package
Final passage of the 2025 reconciliation bill contains updates to tax credits which will help make child care more affordable for more working families with young children including: The following …
STATEMENT: FFYF’s Sarah Rittling on proposed expansion of child care tax credits
On Monday afternoon, the Senate released the text of their bill to reauthorize the Tax Cuts and Jobs Act of 2017. This version contains updates to tax credits which will …
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