4. Hidden Tax Break #3: The Child and Dependent Care Credit
Many taxpayers overlook this credit, which can reduce the cost of childcare. For 2025, the IRS permits you to claim up to 35% of your qualifying child and subordinate care costs, depending on your salary. You may be qualified for this profitable credit if you pay for childcare, after-school programs, or care for a subordinate grown-up. Maximize the Child and Dependent Care Credit.
Maximizing This Credit
For example, if you spend $6,000 on care for two children, you could receive a credit of up to $2,100. This credit directly reduces your tax liability, so don’t leave money on the table! Learn more about IRA contributions.
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