How does the child and dependent care credit work?

The child and dependent care tax credit (CDCTC) could offset costs related to caring for a qualifying child or dependent while you work or look for work. Here’s how it works, who may qualify, and how to claim the credit when you file your federal income tax return. What is the child and dependent care credit? The child and dependent care credit (CDCC) is a tax credit for eligible expenses related to caring for qualified dependents. Parents and caregivers can claim this credit on their federal income t ...