Child And Dependent Care Credit: Eligibility and Income Limit in 2023

The Child and Dependent Care Credit is a federal tax credit that helps with families’ expenses for child care. In this article, read and find out the eligibility criteria and income limit for the tax credit in 2023!

Child and Dependent Care [Photo: Forbes]

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Who are eligible for these tax credits?

According to an article from the Get It Back campaign, to be eligible for these tax credits, the applicant must have paid for an eligible child under the age of 13 in 2021. This child must have been claimed as a dependent. Other dependents may be a spouse or a disabled person who lived with the applicant for more than half a year. The applicant must also need the child or dependent care so they can work or look for a job. Lastly, the applicant must have spent less for dependent care than their total income in 2021. If the applicant has filed a joint tax return, they must have paid less than the income of the spouse with the lowest earnings in 2021.

What is the income limit for these tax credits?

An article in MARCA says that the income limit for the child and dependent care in 2023 has been established at $43,000 or less. This means that applicants who earn more than the income limit will not be eligible to receive these tax credits. However, those who meet the eligibility criteria and income limit requirement can receive tax rebates worth up to $3,000.

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