Child Care Credit in Illinois
The federal Child and Dependent Care Credit allows taxpayers who pay for child or dependent care while working or looking for work to offset a portion of those expenses on their 2025 federal return. Eligible costs include daycare, after-school programs, and summer day camps for children under age 13.
Illinois also offers a state-level Child Care Credit equal to a percentage of the federal credit claimed, providing an additional reduction in Illinois income tax liability. Families in the Chicago metro area and other high-cost regions often pay substantial daycare costs that make this credit especially valuable.
To claim both credits, taxpayers need the care provider's name, address, and Employer Identification Number or Social Security Number, along with records of total amounts paid. Keeping payment receipts and year-end statements from providers throughout 2025 ensures a smooth filing process.