Child- and Dependent-Care Credit
Taxpayers who pay someone to care for their child and/or other dependent so the taxpayers can work are eligible for a credit based on the amount of their expenses and their earned income level; it is known as the child- and dependent-care credit. This credit is designed to encourage taxpayers who work and have children to pro- vide them with adequate care while they are at work. It also provides tax relief to lower-income working families who have children at home. The child- and dependent- care credit is a nonrefundable credit. To qualify for the credit, a taxpayer must meet two conditions: