Daycare is one of the biggest checks you write each year, and a chunk of it can come back at tax time — but only if your year-end receipt has the right information on it.
A daycare year-end tax receipt should list the provider's legal name, address, and Tax ID (an EIN or SSN), each child's name, the total you actually paid during the calendar year, and the dates of care. The Internal Revenue Service requires that Tax ID on Form 2441 to claim the federal Child and Dependent Care Credit, so it is the one detail you cannot do without.
A complete year-end receipt shows the provider's legal name, address, and Tax ID (an EIN for a center, or an SSN for many in-home providers), your child's name, the total you actually paid during the calendar year, and the dates of care. Per the IRS 2025 Form 2441 instructions, the provider's identifying number is mandatory to claim the credit.
The amount on the receipt should reflect what you paid, not what was billed. Deposits applied to tuition count; a registration fee usually does, but late fees and unrelated charges may not. If the receipt only shows a total, ask for a month-by-month breakdown so your records match the statement.
| Line on the receipt | Why the IRS wants it | What to check |
|---|---|---|
| Provider legal name | Identifies who was paid | Matches the business or person, not a brand name |
| Address | Required on Form 2441 | Current physical address |
| Tax ID (EIN or SSN) | Mandatory to claim the credit | Present and legible, the part people forget |
| Amount paid in the year | Sets your eligible expenses | Reflects payments, not invoices |
| Child name and dates | Confirms qualifying care | One line per child |
You claim it with IRS Form 2441, attached to your Form 1040. For tax year 2025, the federal Child and Dependent Care Credit is worth 20 to 35 percent of up to $3,000 in work-related care expenses for one child, or $6,000 for two or more, according to the IRS 2025 Form 2441 instructions. Your percentage drops as income rises.
To qualify, the care has to let you (and a spouse, if married) work or look for work, and the child must be under 13. You enter the provider's name, address, and Tax ID, then the amount you paid. The credit is non-refundable, meaning it reduces the tax you owe but is not paid out as a refund on its own. For the bigger picture, see our guide to the daycare tax credit.
One change worth knowing. Under the 2025 One Big Beautiful Bill Act, the Child and Dependent Care Credit rises to 20 to 50 percent of eligible expenses starting in tax year 2026, with the top 50 percent rate phasing out above $15,000 of income, per IRS guidance. So the receipt you collect for 2025 uses the old rate; the one you collect for 2026 may be worth more.
Send the provider IRS Form W-10, which formally requests their name, address, and identifying number. Most providers comply, because the form is routine and the IRS expects them to furnish it. Give them a reasonable deadline in writing and keep a copy of the request.
If they still refuse, you are not out of luck. The IRS lets you claim the credit by writing "See attached statement" in the Tax ID box on Form 2441 and attaching a note that shows you made a good-faith effort, per the Form 2441 instructions. Keep your cancelled checks, bank records, and the W-10 as backup in case of a question later.
For a licensed in-home family daycare, ask for the same year-end statement a center would give, with the provider's SSN or EIN. Many in-home providers will give an EIN rather than a personal SSN, which is fine for Form 2441. The Tax ID is still required.
A household nanny is different: if you paid a nanny directly, you may be a household employer with payroll obligations, not just a customer buying care. That is a separate set of rules, and the year-end paperwork looks different. If you are weighing the two arrangements, our comparison of deposits and fees and the cost calculator can help you see the all-in numbers before you decide.
Maybe. A Dependent Care Flexible Spending Account, offered through many employers, lets you set aside up to $5,000 per household pre-tax in 2025, per IRS limits ($2,500 if married filing separately). For higher earners, that pre-tax break often beats the percentage credit. You generally cannot use the same dollars for both, though some families combine them up to the limits.
The catch is timing: FSA money is "use it or lose it" within the plan year, and you elect it during open enrollment before you know your exact daycare bill. Estimate conservatively. If your employer offers one, run your numbers both ways, or ask a tax preparer, before you decide. Either route still depends on a clean year-end receipt with the provider's Tax ID.
The honest tradeoff. The Child and Dependent Care Credit helps, but it will not make daycare cheap. For one child, 20 to 35 percent of $3,000 is a few hundred to about a thousand dollars against an annual bill that often runs $12,000 or more. It is real money worth claiming — just do not budget as if it covers a large share of the cost.
When should I expect my receipt? Most centers send year-end statements in January, ahead of the tax-filing season. If yours has not arrived by late January, ask the office directly.
Does preschool tuition count? Yes, for a child under 13, preschool and daycare both count as care that lets you work, per IRS Publication 503. Kindergarten and above generally do not, though before- and after-school care can.
Can both parents claim it? On a joint return you claim it together. The credit generally requires both spouses to have earned income, with limited exceptions for a full-time student or a disabled spouse.
Get a year-end receipt with the provider's Tax ID, the amount you actually paid, and your child's name, then claim it on Form 2441. For 2025 the credit is 20 to 35 percent of up to $3,000 or $6,000 in expenses; for 2026 it rises to as much as 50 percent under the new law. If your provider drags their feet on a Tax ID, send Form W-10 and keep your records.
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