What's the Difference Between the Child Tax Credit and the Child and Dependent Care Credit?

The Child Tax Credit and the Child and Dependent Care Credit are two different tax breaks for parents, and they reward different things. The Child Tax Credit is a credit for simply having a qualifying child under age 17 — it's worth up to $2,000 per child in 2024 and doesn't require you to have any particular expenses. The Child and Dependent Care Credit is for money you actually spend on childcare so you can work or look for work, such as daycare, after-school programs, or a babysitter. The Child and Dependent Care Credit covers up to $3,000 in care expenses for one child or $6,000 for two or more, and the credit rate ranges from 20% to 35% depending on your income. You can claim both credits in the same year as long as you qualify for each one separately.