What is the purpose of the Child and Dependent Care Credit?

The purpose of the Child and Dependent Care Credit is to provide financial relief to parents or guardians for childcare costs incurred while they are working, looking for work, or attending school. This credit is designed to help working families offset the expenses of care for their children under the age of 13 or dependents who are unable to care for themselves. By alleviating some of the financial burdens associated with childcare, the credit encourages parents to maintain employment and support their households effectively.

The focus of the credit is specifically on costs directly tied to care, distinguishing it from educational expenses or health-related costs. This makes it essential for parents to know that the credit is there to support them in managing the essential task of childcare while balancing their professional responsibilities.