
Key Takeaways
- You might be able to claim the Child and Dependent Care Credit, which covers a percentage of child and dependent care costs if you have a dependent child who's 12 years old or under when the care is provided, or a qualifying adult dependent.
- You might be able to decrease the taxes you owe or even receive a refund by claiming the Earned Income Credit if you meet certain income requirements.
- If you purchase a health plan through the Health Insurance Marketplace and fall within certain income limits, you might qualify for the premium tax credit.
Dependent care tax credit
If have a caregiver look after your qualifying child or other individual while you look for work, you can claim the Child and Dependent Care Credit to receive a percentage of childcare costs as a credit on your tax returns.
To be eligible for the credit, the dependent must be your child who is 12 years old or under when the care is provided; a mentally or physically incapacitated spouse who lives with you for at least half of the year; or a mentally or physically incapacitated dependent (or meets other dependent-like requirements) who resides with you for at least half of the year.
A non-custodial parent is not eligible to be paid as a caregiver. Social Security numbers for all children, dependents and caregivers, along with addresses, must be included on your return.
Earned Income Credit
The Earned Income Credit (EIC) decreases the amount of taxable income for working individuals making a low to moderate income. It may also provide a refund in some circumstances. To qualify for the EIC, all of the following criteria must be met:
- you, and your spouse, if you file a joint return, must have a valid Social Security number
- you must be a U.S. resident or a year-round resident alien
- you must meet the EIC earned income limits
- you can't file as “married filing separately”
- you can’t be a qualifying child of another person
- you must have earned income from working, running a business or a farm
- you can’t have earned foreign income
You also are required to have a qualifying child or be between the ages of 25 and 65, live in the United States, and not be a dependent of another person.
Your income also has to be below a certain amount. As an example, for the 2026 tax year, the upper limit of earned income for joint filers ranges from $19,504 for a single person with no qualifying children to $70,244 for a married couple filing jointly with three or more qualifying children ($19,104 and $68,675, respectively, for 2025).
TurboTax Tip:
If you're single and have earned income of $19,504 or less in 2026, you might qualify for the Earned Income Credit, even if you don't have children. If you do have children, the 2026 upper limit of earned income is $70,244 for those Married Filing Jointly with three or more qualifying children.
Opt for the premium tax credit
If you purchase your health insurance from the Health Insurance Marketplace, don’t forget to claim the premium tax credit.
“If you qualify, you can estimate your income and opt to have the credit paid directly to the health insurance provider now,” explains Caroline Thompson, an accountant. “Or you can wait and receive it at the end of the year.” To qualify for the premium tax credit, you are required to meet all of the following criteria:
- purchase a health plan through the Health Insurance Marketplace
- can’t be claimed as another person’s dependent
- fall within certain income limits
- do not qualify for health insurance from the government or an employer
- file a joint return if you are married
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