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The Curious Bag
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The IRS allows a child care tax credit for working parents or legal guardians. To claim the credit, you must file using form 1040, 1040A or 1040NR and identify the care provider on your tax return, according to IRS Publication 503.
Identification
You can claim child care expenses on your taxes if your income exceeds the child care expense, the child receiving care was under age 13 at the time the expense was incurred and the child is your legal dependent, according to IRS Publication 503.
Maximum Credit
The maximum child care credit is $3,000 for one child and $6,000 for two or more children, according to the IRS. Depending on your adjusted gross income for the current year, your credit will be 20 to 35 percent of the maximum.
Decrease Your Tax Bill
Claiming child care expenses on your taxes decreases your gross taxable income, reducing your tax burden. If you owe taxes for the current year, claiming child care expenses will lower the amount you owe to the IRS.
Increase Your Refund
If you overpaid your taxes for the current year, claiming child care expenses increases your tax refund.
Considerations
Dependent care benefits provided by your employer are not taxable, according to the IRS. Even if you receive dependent care benefits, you can claim child care expenses in excess of the value of the benefits and receive a tax credit.
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