2022 Child and Dependent Care Credit
The child and dependent care credit is a tax credit that may help you pay for the care of eligible children and other dependents (qualifying persons). The credit is calculated based on your income and a percentage of expenses that you incur for the care of qualifying persons to enable you to go to work, look for work, or attend school.
For tax year 2022, the amount of eligible dependent care expenses has decreased from $8,000 to $3,000 for one eligible person and from $16,000 to $6,000 for two or more eligible persons. The credit is also no longer refundable.
The maximum credit rate also decreases from 50% to 35%.
Employer-Provided Dependent Care Benefits
The exclusion for employer-provided dependent care assistance also decreases from $10,500 to $5,000 ($5,250 for married filing separately to $2,500).
