The child and dependent care credit is a nonrefundable credit that allows taxpayers to reduce their tax liability by a percentage of their child and dependent care expenses. The credit may be claimed by taxpayers who, in order to work or look for work, pay someone to care for their qualifying:
The credit can range from 20% to 35% of a taxpayer's qualifying child or dependent care expenses. The percentage is based on the taxpayer's earned income and adjusted gross income. The amount of the credit cannot be more than the amount of income tax on the return; that is, it can reduce an individual's tax to $0, but it cannot result in a refund.