CHILD AND DEPENDENT CARE CREDIT (4 OF 4)
01.Core Concepts
• Covers costs for care of qualified individual within taxpayer’s home or outside home. • If outside home, dependent or spouse incapable of self care must spend at least 8 hours a day within taxpayer’s home. • Amount of costs that qualify is the lesser of: • Earned income, or • Actual costs, or • $3,000 for one qualified individual, and $6,000 for two or more qualified individuals. • Special Rules • If spouse is full-time student, deemed to earn $250 per month (or $500 per month if 2 or more qualifying individuals)