, EA, Social Media Tax ExpertTaxPro Moderator
They are referring to taxes on earned income. This is different than a penalty or capital gains tax, for example.
The Child and Dependent care credit is what is called a non-refundable credit which means you have to have a tax liability to benefit from it.
Hope that helps to clarify.
The IRS Child and Dependent Care Expense Credit can reduce your tax bill if you paid for a dependent's care so that you could work or go to school full-time. There is no minimum amount you have to spend to qualify.
The credit is worth up to $3,000 per dependent – with a maximum of $6,000 for two or more dependents – as long as you (and your spouse, if you're filing jointly):
- Have earned income; and
- Paid someone else to care for a child under age 13, disabled spouse, or dependent; and
- Paid the expenses so you could work, look for work, or go to school full time.
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