Child and Dependent Care Tax Benefits: How They Work and Who Receives Them [October 26, 2017] [open pdf - 846KB]
"Two tax provisions subsidize the child and dependent care expenses of working parents: the child and dependent care tax credit (CDCTC) and the exclusion for employer-sponsored child and dependent care. The child and dependent care tax credit is a nonrefundable tax credit that reduces a taxpayer's federal income tax liability based on child and dependent care expenses incurred. The policy objective is to assist taxpayers who work or who are looking for work. A taxpayer must meet a variety of eligibility criteria including incurring qualifying child and dependent care expenses for a qualifying individual and have earned income."
CRS Report for Congress, R44993
Federation of American Scientists: http://www.fas.org/sgp/crs/index.html