Is there a limit to how much of my child's daycare costs are tax-deductible?

Question

1 child, $10,000 per year for daycare, $100,000 household income, married filing jointly.

Answer 1

The costs themselves are not deductible, however, there is a tax credit of 20-35% of your applicable expenses. For your income, you would apply the 20%rate and only $3,000 can be used of your $10,000 for a tax credit of $600.

Answer 2

yes it is limited