The Dependent Care Credit is a tax credit designed to help families offset the costs of childcare for dependents, allowing parents to work or look for work while ensuring their children are cared for. This credit is particularly important as it is directly linked to the overall concept of dependents and exemptions, as qualifying children must be dependents under specific age and care conditions. Understanding this credit is essential for effective family tax planning, as it can significantly reduce a family's tax liability based on their childcare expenses.
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