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Last Updated: 7/9/2018

Child and Dependent Care Credit

The Minnesota Child and Dependent Care Credit helps offset certain care expenses for one or more qualifying persons. This credit is refundable, meaning you can receive a refund even if you do not owe income tax. To claim the credit, complete Schedule M1CD, Child and Dependent Care Credit.
 

Who is a qualifying person?

The Minnesota Department of Revenue uses the federal definition for qualifying person (see IRS Publication 503). You may claim the credit if your child meets the requirements of a qualifying person for the federal credit. You may also claim the credit if all of the following apply:
  • Your child meets the requirements of a qualifying person for the federal credit.
  • Your child is not your dependent.
  • You were divorced, legally separated, or lived apart from your spouse during the last six months of 2017.
    • Note: In this case, the other parent cannot treat the child as a qualifying person.
When you calculate the financial support you provided for a qualifying person, we do not require you to include Minnesota Family Investment Program (MFIP) or Minnesota Supplemental Aid payments.
 

Do I qualify for this credit?

You may be eligible for this credit if you (and your spouse if filing a joint return) had earned income. You must have documentation showing the expenses you paid for one or both of the following:
  • Someone to care for your child or other qualifying person.
  • Someone for household services.
To qualify for the credit, all of the following must be true:
  • You are a Minnesota resident or part-year resident.
  • Your filing status is not Married Filing Separate.
  • The qualifying person lived with you for more than half of the year.
  • Your 2017 federal adjusted gross income is less than $62,000 with one qualifying person or $74,000 with two or more qualifying persons.
You may still qualify if you had or adopted a baby born during the tax year or if you are a licensed daycare operator. For more information, see the instructions for Schedule M1CD.
 

What expenses qualify for this credit?

Qualifying expenses are the same as for the federal credit. This includes payments for the qualifying person’s needed household services and care that allow you (and your spouse if married) to work or look for work.
 
The following costs are not eligible:
  • Food, clothing, education, or entertainment – unless provided as part of the care and cannot be separated from other care expenses.
  • Payments made for you by another person or government agency.
Note: You may claim up to $3,000 in qualifying expenses for one child or $6,000 for two or more children.
 

How much is this credit?

If your federal adjusted gross income (FAGI) is less than $50,000, your credit will be equal to the Federal credit. The credit begins to phase out if your FAGI is over $50,000. The Minnesota credit is limited to the amount of the Federal Child and Dependent Care Credit.
 
If you have ​And your 2017 FAGI is ​Your maximum credit is
​1 qualifying dependent ​less than $50,000 ​equal to the Federal credit
​between $50,000 and $62,000 ​$600 reduced by 5% of FAGI exceeding $50,000
​more than $62,000 ​$0 (You are not eligible)
​ 2 or more qualifying dependents ​less than $50,000 ​equal to the Federal credit
​between $50,000 and $74,000 ​$1,200 reduced by 5% of FAGI exceeding $50,000
​more than $74,000 ​ $0 (You are not eligible
You must adjust your credit amount if any of the following apply: