field_block:node:page:title
Child and Dependent Care Credit
field_block:node:page:body
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.
field_block:node:page:field_paragraph
The credit begins to phase out if your federal adjusted gross income is over $59,210.
| If you have | and your 2023 federal AGI is | your maximum credit is |
|---|
| 1 qualifying dependent | less than $59,210 | $600 |
| 1 qualifying dependent | between $59,210 and $71,210 | $600 reduced by 5% of federal AGI exceeding $59,210 |
| 1 qualifying dependent | more than $71,210 | $0 (You are not eligible) |
| 2 or more qualifying dependents | less than $59,210 | $2,100 |
| 2 or more qualifying dependents | between $59,210 and $83,210 | $1200 reduced by 5% of federal AGI exceeding $59,210 |
| 2 or more qualifying dependents | more than $83,210 | $0 (You are not eligible) |
You must adjust your credit amount if either of these apply:
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 either:
- Someone to care for your child or other qualifying person
- Someone for household services
To qualify for the credit, all of these must be true:
- Your filing status is not Married Filing Separately
- The qualifying person lived with you for more than half of the year
- Your 2023 federal adjusted gross income is less than $71,210 with one qualifying person or $83,210 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 details, see the instructions for Schedule M1CD.
The Minnesota Department of Revenue uses the federal definition for qualifying person (see IRS Publication 503). You may claim the credit if both of these apply:
- Your child meets the requirements of a qualifying person for the federal credit.
- Your child is not your dependent and you were divorced, legally separated, or lived apart from your spouse during the last six months of 2023. 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, you do not need to include Minnesota Family Investment Program (MFIP) or Minnesota Supplemental Aid payments.
Generally, expenses may qualify if you paid for either:
- The care of your qualifying person so you (and your spouse, if filing a joint return) could work or look for work
- Household services so you (and your spouse, if filing a joint return) could work or look for work
These 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.
