Child Care Resource & Referral

Serving Southeastern Minnesota

Tax credits and assistance

  • The Child and Dependent Care Tax Credit permits parents to receive federal and state tax credits for child care expenses. The amount you can claim depends on your income and how much you pay for child care in a calendar year. Use IRS Form 4221 Credit for Child Care and Dependent Care Expenses (federal), and MN Form M-1 (state).
  • Pre-tax Accounts for child and dependent care may be available through your employer. This option requires you to estimate your annual expenses (up to $5,000) and draw those funds throughout the year from an account that has been set up using pre-tax dollars from your payroll deductions. Ask your employer if this is available where you work.
  • The Earned Income Tax Credit and the Minnesota Working Family Credit are federal and state credits that help contribute to working families' income by increasing your tax return at the end of the year or by adjusting your monthly withholding. Your employer can give you more information, or you can call the Minnesota Department of Revenue at (651) 296-3781. For information, call your local Child Care Resource and Referral program.
  • The Education Tax Credit is a Minnesota credit that allows low to moderate income families to deduct certain K-12 educational expenses from your taxes. Some child care related expenses such as school age enrichment programs or tutoring might qualify. Consult the instructions or call the State of Minnesota at (651) 296-3781 for more information.