Answer :
The Child and Dependent Care Credit is a tax credit that helps parents and families pay for the care of their children and other dependents while they work, are looking for work, or are going to school.
Childcare and nursing care costs money! Luckily, there are tax deductions to cover the costs. If you had to pay someone to care for your children, family members, or spouse, find a job, go to school, or because of a disability, Child and Dependent Care credits are available.
You are generally eligible for the Child and Caregiver Tax Credit if you meet all of the following conditions:
- Wages from work. If you are married and are filing a joint tax return, your spouse must also have income.
- Your application status is Single, Married and Co-Applicant, Head of Household, or Eligible Widow with her one dependent child.
- You (and your spouse in the case of a joint application) have income from employment or self-employment. You are exempt from this obligation if you were a full-time student or severely disabled.
- You paid someone to provide care for a beneficiary, but the provider is a dependent, beneficiary's parent, spouse, or child under the age of 19 (whether or not you are a dependent). It was not a person who could claim as a person.
- If you (and your spouse, if you are married) work, seek employment, attend school, or are disabled, you must pay for child care and maintenance.
For year 2022, the Child and Caregiver Tax Credit is non-refundable. For eligible employment-related expenses, taxpayers can claim up to $3,000 for each eligible individual or one child, and up to $6,000 for two or more eligible individuals or children.
To learn more about Child and Dependent Care Credit, refer:
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