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question.jpgIn Federal Income Tax

What is the child and dependent care credit?

The child and dependent care credit allows certain people to reduce the amount of tax they owe where they paid for the care of a child or dependent who lived with them, and they had to arrange for such care so that they could work. The amount of the credit is calculated based on your adjusted gross income for the tax year as well as your care expenses for that year, but will generally between $600 and $1,050 if you had one child or dependent, or between $1,200 and $2,100 if you had two or more children or dependents.