Child and Dependent Care Tax Credit in District of Columbia

The District of Columbia offers two distinct versions of the child and dependent care tax credit:

1. The Child Care Affordable Tax Credit (previously known as the Early Learning Credit) is fully refundable and has a cap of $1,160 per eligible child.

2. The DC Credit for Child and Dependent Care is a nonrefundable credit that is equal to 35% of the federal Child and Dependent Care Tax Credit (CDCTC). For filers with an income exceeding $43,000, the maximum credit is $210 for one qualifying child and $420 for two or more qualifying children.

Eligibility Criteria

To qualify for these credits, District of Columbia taxpayers who are eligible for the federal credit are automatically qualified. However, your income, filing status, and the age of your child may affect your eligibility.

Definition of an Eligible Child

To qualify for the Child Care Affordable Tax Credit, an eligible child must have been born between October 1, 2020, and December 31, 2024, and be claimed as a dependent by the taxpayer. If a child turns four between January 1 and September 30, 2024, they will no longer be eligible.

To claim the DC Child and Dependent Care Tax Credit, qualifying children must be under the age of 13. Similar to the federal credit, you can also claim a spouse or dependent who is unable to care for themselves.