Child & Dependent Care Tax Credit

Minnesota provides a refundable Child and Dependent Care Tax Credit that helps offset the high cost of child care for some low- and moderate-income families.

However, the size of the credit doesn’t reflect rising child care costs and the scope of its reach is limited. During the 2017 special legislative session, lawmakers passed an increased and expanded Child and Dependent Care Tax Credit to help more low- and mid-income families afford the high cost of care. Families with one dependent will now be able to access a new maximum credit of $1,050 (up from $720) and the maximum adjusted gross income to qualify for the credit will be $62,000 (up from $39,400). Families with two or more dependents will be able to access a new maximum credit of $2,100 (up from $1,440) and the maximum adjusted gross income to qualify for the credit will be $74,000 (up from $39,400).

Children’s Defense Fund-Minnesota supports improving the Child and Dependent Care Tax Credit, including by increasing the size of the credit and expanding eligibility to reach more low- and moderate-income families so they can afford safe, consistent, high-quality child care that meets their needs.

Learn more about the Child Care Assistance Program.