Child Care Credit In California
The federal Child and Dependent Care Credit helps offset the cost of childcare for working parents in 2025. Eligible expenses include daycare, after-school programs, and summer day camps for children under age 13. The federal credit is nonrefundable and is worth between 20% and 35% of qualifying expenses, depending on the filer's adjusted gross income.
California offers its own Child and Dependent Care Expenses Credit, which is refundable for lower-income filers. The California credit percentage ranges from 8% to 63% of qualifying expenses, with higher percentages available to families with lower incomes. This makes the combined federal and state benefit particularly valuable for California families paying high childcare costs in cities like Los Angeles, San Francisco, and San Diego.
To claim both credits, filers need the name, address, and taxpayer identification number of each care provider. Childcare costs in California are among the highest in the country, so accurately documenting all qualifying expenses is important. Families using employer-sponsored dependent care flexible spending accounts should coordinate those benefits with the credit calculation to avoid double-counting.