Child and Dependent Care Credit - General Eligibility Requirements

General Eligibility Requirements

IRC section 21 uses the term "qualifying individual" rather than “dependent" to refer to the types of dependents the care for whom will trigger the credit. Qualifying individuals must be one of 3 types:
1) Dependents under age 13 for whom a dependency exemption may be claimed,
2) Dependents of any age who share the same principal place of abode as the taxpayer and are physically or mentally incapable of taking care for themselves,
3) Spouses of any age who share the same principal place of abode as the taxpayer and are physically or mentally incapable of taking care for themselves, or
4) Certain dependent children of divorced parents.

Does the Taxpayer "Maintain the Household"? The taxpayer must “maintain the household” for the qualifying individual(s), which means the taxpayer must furnish over 1/2 of the total cost of maintaining the household. In addition, if the taxpayer is married, both the taxpayer and their spouse must have earned income, unless one spouse was either a full–time student or was physically or mentally incapable of self–care.

Does the Dependent Have the Requisite Age and Relationship? A taxpayer can claim a dependency exemption for a dependent under the age of 13 if the dependent is the taxpayer's child, sibling, half-sibling, stepsibling or a descendant of any such individual. The qualifying child must not provide more than 1/2 of his or her own support and must have the same principal place of abode as the taxpayer for more than six months of the year.