Requirements for the Credit
Principal Place of Abode - A qualifying individual must have the same principal place of abode as the taxpayer for more than half of the tax year.
Qualifying Individual - A “qualifying individual” can be any of the following:
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A qualifying child who is the taxpayer’s dependent and who is under age 13 when care is provided;
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The taxpayer’s spouse who was physically or mentally not able to care for himself or herself and lived with the taxpayer for more than half the year;
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A person who was physically or mentally not able to care for himself or herself, lived with the taxpayer for more than half the year, and either:
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Was the taxpayer’s dependent, or
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Would have been the taxpayer’s dependent except that:
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He or she received gross income of $5,200 (2025) ($5,050 2024: $4,700 2023; $4,400 2022)or more
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He or she filed a joint return, or
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The taxpayer, or the taxpayer’s spouse if filing jointly, could be claimed as a dependent on someone else’s return.
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The qualifying individual’s name and social security number are required to be shown on Form 2441.
Special Rule for Children of Separated or Divorced Parents - In the case of a child of divorced or separated parents, only the custodial parent may claim the credit, even if the non-custodial parent may claim the dependency for that child under Code Sec. 152(e). This is the case even if the custodial parent has waived the child’s dependency to the non-custodial parent. Even if the child resides with the non-custodial parent for part of the year, the non-custodial parent is not eligible for any childcare credit. Regulations define a custodial parent as the parent with whom a child shares the same principal place of abode for the greater portion of the calendar year. (Reg. Sec. 1.21-1(b)(5)(ii))
Definition of Marital Status - The credit is not allowed for taxpayers who are married unless they file a joint return. Taxpayers who are separated under a decree of divorce or separate maintenance are not married for purposes of the childcare credit.