Childcare is expensive (understatement of the year). The good news? Some of those costs may qualify for a tax break. The bad news? Not all of them do.
Let’s make it simple.
The Credit You’re Looking For
The Child and Dependent Care Credit can help offset some of your childcare expenses — but only if you pay so you can work or look for work.
What Usually Counts ✅
- Daycare centers: Licensed providers generally qualify
- In-home babysitters/nannies: As long as you’re paying them (and reporting it)
- Before- and after-school programs: School = education, but these programs = care
- Day camps: Summer day camps are usually covered
What Usually Doesn’t Count ❌
- Sleepaway (overnight) camps: Sorry, no deduction for bunk beds and s’mores
- Babysitting by grandma: Unless she’s formally paid and reported
- School tuition: Kindergarten and up = education, not childcare
- Unpaid friends or family: Generosity is lovely, but the IRS doesn’t give credit for free help
Pro Tips for Parents
- Keep receipts + provider info: You’ll need names, addresses, and tax IDs
- No under-the-table payments: Cash that isn’t reported doesn’t qualify
- It’s a percentage, not a full refund: The credit is a slice of what you paid, not dollar-for-dollar
👉 Make it painless: Use our free Expense Tracker to upload daycare receipts, log babysitter payments, and store camp invoices all in one place. When tax time hits, your paperwork’s already done.
Bottom Line
If you’re paying for childcare so you can work, you may be eligible for this credit — but the details matter.
👉 We’ll help you sort what counts and make sure you don’t miss out. Book in 2 minutes → makeadultingeasier.com/book
General information only — confirm with current IRS guidance or a tax professional.
