One piece of tax information that many parents forget to bring us each year for preparation of their tax return is childcare information.  If you paid for someone to care for a dependent age 12 or younger or a disabled dependent or spouse while you worked or looked for work, you may be able to claim the Child and Dependent Care Credit on your tax return.

This article examines the requirements for claiming the credit as well as the amounts you are allowed to take as a credit on your tax return.

You will qualify for the credit if you:

• have paid for care expenses in order to earn taxable income. If you are married both spouses must work either full or part time. Spouses who are full time students or incapacitated are excepted.;
• pay more than 50% of the household maintenance costs for a qualifying dependent;

• file your tax return jointly if married, unless the separation rules apply;
• hire someone other than your child (under age 19 at the end of the tax year), your spouse, or a person you can claim as a dependent;
• have qualifying expenses over and above any tax free reimbursements from your employer;
• report on your IRS tax return the name, address, and taxpayer identification number of the child care provider. If the care provider is a tax exempt organization the taxpayer identification number is not required.

In order to claim the credit, you must maintain as your principal home a household for at least one of the following qualifying persons who live with you:

• a child under 13 years of age whom you claim as a dependent;
• your spouse if your spouse is physically or mentally incapable of caring for himself or herself;
• a person who is physically or mentally incapable of caring for himself or herself regardless of age.

The following qualifying expenses (maximum $3,000 for one dependent, $6,000 for more than one) must be reduced by any tax free reimbursements that you receive from your employer:

• costs of caring for your dependent under age 13, incapacitated spouse, or incapacitated dependent in your home;

• ordinary domestic services in your home, such as cooking, cleaning, and laundry that are partly for the care of the qualifying person;

• out-of-the-home care costs for a child under age 13 in a day care center, day camp, nursery school, or in the home of a baby sitter. These costs also qualify for the credit if they are for a handicapped dependent, regardless of age, if he/she spends at least eight (8) hours per day in your home.

Each child for whom the credit is claimed must have a Social Security or Taxpayer Identification Number.  Special tax rules apply if your spouse is a student, is incapable of caring for himself or herself, for separations, and for payments to relatives.

Employment-related expenses that qualify for the credit include household services and expenses for care of the qualifying individual. Expenses of attending a daytime summer camp qualify for the credit if that is a reasonable means of providing care during working hours. Overnight camp expenses do not qualify. A nursery school generally qualifies for the credit, but an elementary school does not.

The credit is allowed for $3,000 of expenses for one dependent's care and $6,000 for more than one dependent's care. See the table below to determine your Child and Dependent Care Credit.