Background
Federal courts have confirmed that expenses incurred for the care of a dependent, such as babysitting or daycare, while the taxpayer is at work, are not included in deductible business expenses and are not deductible under IRC section 162(a). As a result, single-earner households with qualifying individuals are favored over two-earner households with qualifying individuals, as the cost of daycare often outweighs the extra income made in two-earner households. IRC section 21 serves to lessen this imbalance by allowing a limited credit for certain expenses related to the care of a qualified dependent.
Read more about this topic: Child And Dependent Care Credit
Famous quotes containing the word background:
“I had many problems in my conduct of the office being contrasted with President Kennedy’s conduct in the office, with my manner of dealing with things and his manner, with my accent and his accent, with my background and his background. He was a great public hero, and anything I did that someone didn’t approve of, they would always feel that President Kennedy wouldn’t have done that.”
—Lyndon Baines Johnson (1908–1973)
“They were more than hostile. In the first place, I was a south Georgian and I was looked upon as a fiscal conservative, and the Atlanta newspapers quite erroneously, because they didn’t know anything about me or my background here in Plains, decided that I was also a racial conservative.”
—Jimmy Carter (James Earl Carter, Jr.)
“... every experience in life enriches one’s background and should teach valuable lessons.”
—Mary Barnett Gilson (1877–?)