Final answer:
The key aspect of the child- and dependent-care income tax credit is that it provides a tax credit to eligible taxpayers who have incurred expenses to care for a child or dependent. This credit helps offset the cost of child care and dependent care, allowing eligible taxpayers to reduce their tax liability.
Step-by-step explanation:
The key aspect of the child- and dependent-care income tax credit is that it provides a tax credit to eligible taxpayers who have incurred expenses to care for a child or dependent. This credit helps offset the cost of child care and dependent care, allowing eligible taxpayers to reduce their tax liability. The impact of this credit is that it helps eligible taxpayers save money on their taxes and potentially increase their disposable income.
For example, if a taxpayer has paid for child care expenses in order to work or look for work, they may be eligible for the child- and dependent-care income tax credit. This credit can help them reduce the amount of taxes they owe, effectively lowering their tax bill. As a result, eligible taxpayers may have more money available to them for other expenses or savings.