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Last Updated: 8/28/2017

Child and Dependent Care Credit Changes

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The Child and Dependent Care Credit was modified by recent legislation. Taxpayers with a Federal Adjusted Gross Income (FAGI) up to $74,000 that paid someone to care for their child or other qualifying person, or paid someone for household services, may now be eligible.
 

How much is this credit?

For taxpayers with FAGI less than $50,000, the credit will be equal to the Federal credit. The credit begins to phase out for individuals with a FAGI over $50,000. The Minnesota credit is limited to the amount of the Federal Child and Dependent Care Credit.
 
​ If you have ​ And your Federal Adjusted 
 Gross Income (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)

When is this credit available?

The eligibility changes are effective for tax year 2017, but the Child and Dependent Care Credit currently exists. You may file for tax year 2016 and earlier by using Schedule M1CD, Child and Dependent Care Credit.
 

Do I qualify for this credit?

See Child and Dependent Care Credit for additional information.
 

How do I file for this credit?

Eligible taxpayers should complete Schedule M1CD, Child and Dependent Care Credit, to file this credit. Visit our website in January 2018 for tax year 2017 forms and instructions.