Final answer:
The true statement about the Child and Dependent Care Credit is that for a married couple to claim it, one spouse must work, seek work, or be a full-time student. Taxpayers can also claim the credit for a disabled spouse and for care of disabled adult children living with them.
Step-by-step explanation:
True Statement about the Child and Dependent Care Credit:
The true statement about the Child and Dependent Care Credit is that for a married couple to claim the credit, at least one spouse must work, be looking for work, or be enrolled as a full-time student. The credit does indeed phase out when a taxpayer's adjusted gross income crosses a certain threshold. Moreover, contrary to the stated option, taxpayers can claim the credit for the care of a disabled spouse, and single taxpayers may claim the credit for care of certain disabled adult children who live in the house.
It's important to note that the Child and Dependent Care Credit is there to support working families by reducing their tax liability and encouraging work participation. Similar to Earned Income Tax Credit (EITC), it follows a phase-out system where the credit is gradually reduced based on adjusted gross income, thereby also aiming to avoid a poverty trap, where earning more would lead to a reduction in government support.