Child Care Expenses: The Child Care Credit

Research Report

Child Care Expenses: The Child Care Credit

From The Encyclopedia of Taxation and Tax Policy
October 1, 1999

Abstract

The Internal Revenue Code provides tax benefits in the form of a credit or exclusion for child care expenses incurred by taxpayers deemed to be gainfully employed. The nonrefundable credit is based on employment-related expenses of household-type services for th care of children. This entry focuses on the child care credit, examining its impact on the progressivity of the federal individual income tax from 1979 through 1988.

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