What determines whether the Child and Dependent Care Credit can be claimed by a married couple?

The Child and Dependent Care Credit is designed to help working families offset the costs of child care for children under the age of 13 or for dependents who are unable to care for themselves. For married couples, one of the fundamental requirements for claiming this credit is that both spouses must have earned income during the tax year.

This requirement is in place because the credit is intended to assist families who incur child care expenses as a result of work obligations. If one spouse does not have employment income, it indicates that there may not be a necessity for the care expenses related to employment, which is a key aspect in qualifying for the credit. Overall, this rule encourages both parents to seek employment, helping alleviate some of the financial burden associated with child care, which is increasingly important in today's workforce dynamics.

While there are income thresholds that can affect the amount of the credit a family may claim, and considerations regarding custodial versus non-custodial parent income also play a role in other contexts, the requirement that both spouses must have employment income stands as a key determinant for claiming the Child and Dependent Care Credit in the case of married couples.