What is the maximum amount of expenses that can be claimed under the Child and Dependent Care Credit for one qualifying individual?

The maximum amount of expenses that can be claimed under the Child and Dependent Care Credit for one qualifying individual is correctly identified as $3,000. This credit is designed to assist working parents or guardians with the costs associated with caring for their children or dependents while they are employed or looking for work.

This figure is significant because it establishes a cap on the amount of qualifying expenses that can be factored into the credit calculation, which ultimately leads to potential tax savings. The Child and Dependent Care Credit allows taxpayers to claim a percentage of the eligible expenses they incur for care needed for children under 13 or for dependents who are unable to care for themselves.

The limit of $3,000 applies specifically to one qualifying individual, while if there are two or more qualifying individuals, the amount could go up to $6,000. Understanding these limits is crucial for taxpayers to maximize their credits and reduce their tax liability effectively while benefiting from the support meant to alleviate child and dependent care costs.