Tax expert Abby Eisenkraft has bad news for anyone searching for details about the new stay-at-home-mom tax credit—it doesn’t exist. “There is no stay-at-home parent credit,” Eisenkraft says. A tax break along these lines has been discussed in Washington…but despite what some taxpayers may believe, it wasn’t included in the tax law passed last year.
But there is some good news: Other parent and family caregiver tax credits really do exist, and some even have been enhanced for the 2025 tax year. Bottom Line Personal asked Eisenkraft what parents need to know before they file their tax returns this April.
Tax Credits That May Benefit Parents
Three credits that can lower parents’ tax bills…
Child Tax Credit provides most parents with a credit worth $2,200 per child in 2025, up from $2,000 in 2024. Key details: Children must be under age 17 at year-end to qualify—kids born before January 1, 2009, don’t qualify for this credit on 2025 returns. Both the child and the taxpayer must have valid Social Security numbers—that’s required for most child-related tax credits this year. The credit phases out for parents with modified adjusted gross incomes (MAGIs) above $200,000 ($400,000 if married filing jointly). To claim this credit: File Schedule 8812, Credits for Qualifying Children and Other Dependents, with your return.
Earned Income Tax Credit (EITC) benefits low-to-moderate-income workers. This credit isn’t exclusively for parents, but having kids boosts the credit’s size and the taxpayers’ odds of qualifying. Example: A married couple filing jointly who have no children must have no more than $26,214 in income to qualify in 2025 (no more than $19,104 for single filers), and their credit won’t exceed $649. But a married couple with one child can earn up to $57,554 ($50,434 if single) and the credit could be as much as $4,328. These figures continue to climb if they have multiple kids, with the credit, potentially reaching $8,046. Key details: Children typically must not yet be 19 at year-end…under 24 if a full-time student. To claim this credit: File Form 596, Earned Income Credit (EIC), with your return.
Child and Dependent Care Credit helps families afford the cost of hiring caregivers. The credit amount is between 20% and 35% or up to $3,000 in qualifying child-care costs (up to $6,000 if the family has multiple qualifying children)—the percentage of care costs that can be claimed decreases as the taxpayer’s income rises. The percentage of care costs eligible for this credit will increase beginning in the 2026 tax year. Key details: Married couples who file separate tax returns can’t claim this credit. Children must be under age 13 or a dependent with disabilities when the care is provided. This credit exists specifically to help parents care for their kids while the parents earn a living, so it’s available only to parent(s) who work (or who are looking for work or attending school full-time), and it covers only certain types of care, such as daycare, day camp, and babysitters. Forms of care not covered include sleepaway camps and tutors. To claim this credit: File Form 2441, Child and Dependent Care Expenses, with your return.
Other Family Credits and Deductions
Three more tax benefits for families…
Dependent Care Flexible Spending Accounts (FSAs), offered by some employers, allow employees to pay for eligible dependent-care expenses using pretax dollars. The FSA contribution limit increases from $5,000 to $7,500 for 2026.
Employer-provided childcare could become increasingly available thanks to recently passed legislation that enhances the tax credits available to employers that provide child-care facilities or resources to their employees.
Adoption tax credits have been enhanced. The maximum credit is $17,280 as of 2025.
