Can You Claim the Child and Dependent Care Credit on Your Tax Return If You Don’t Claim the Child as a Dependent?

There may be cases in which you have expenses for caring for a child or dependent, but you don't claim a dependent exemption on your tax return. For example, if you are separated or divorced, your spouse may be entitled to claim the dependent exemption. But even though you don't claim the exemption you may still be able to claim the child and dependent care credit on your tax return.

According to the IRS, if you are divorced or separated, or living apart from your spouse, you can claim the credit for child and dependent care expenses if you meet all the tests. The child must have been under age 13 or unable to care for him or herself, the child must have received more than half his or her support from one or both parents, the child must have been in the custody of one or both parents for more than half the year and you must have been the custodial parent. If you are the noncustodial parent you could not claim the credit even if you were entitled to claim the child as a dependent.

If you meet the tests, you can claim the credit if you had earned income and you paid the child and dependent care expenses so you could work or look for work. The IRS points out that in order to claim the credit, the payments must be to someone you cannot claim as a dependent. And you could not claim a credit for payments you make to your spouse or ex-spouse to care for the child if he or she is the child's parent. If you pay another of your children to care for a younger child, the child who provides the care cannot be your dependent and must be at least 19 years old.

You could claim the credit for child and dependent care expenses you pay to another relative who you cannot claim as a dependent, even if the relative lives with you in your home. But in that case, since you have to provide the taxpayer identification number of the service provider, which would be the person's social security number, that person would have to report the payment as income on his or her tax return, if required to file.

You can claim the credit for expenses you pay to enable you to work or look for work. If you work or look for work for part of the year, you could only claim the credit for the expenses during that period.

You can claim the credit for child and dependent care expenses of up to a maximum of $3,000 for one person and up to $6,000 for two or more persons. The credit is a percentage of your expenses, with the percentage being based on your adjusted gross income. The credit for child and dependent care expenses is claimed on Form 2441.

Sources:

Form 2441, Child and Dependent Care Expenses

Instructions for Form 2441, Child and Dependent Care Expenses