Tax Break Alert: Child & Dependent Care Credit Explained!

Did you send your child to day camp this summer? You may be able to offset some of the costs by claiming the Child and Dependent Care Tax Credit. For middle-income-and-higher taxpayers, for 2025, the credit generally equals 20% of the first $3,000 of qualified expenses for one child or 20% of up to $6,000 of such expenses for two or more children. So, the maximum credit for these taxpayers generally will be $600 for one child or $1,200 for two or more children. For 2026, the One Big Beautiful Bill Act increases the credit percentage from 35% to 50% for lower-income taxpayers, and certain middle-income taxpayers may be eligible for a percentage between 20% and 35%. Contact us for details.