Do the Garcias qualify for the child and dependent care credit?

To determine whether the Garcias qualify for the child and dependent care credit, it's important to understand the eligibility criteria for this credit. The credit is designed to help families offset the costs of child care while they work or look for work.

The child and dependent care credit can be claimed for care provided to a qualifying child under the age of 13, or for a spouse or dependent who is physically or mentally incapable of self-care. To be eligible, the care must be provided so that the taxpayer can work or actively look for work. However, even with these basic requirements met, there are specific income-phase-out thresholds that can affect eligibility.

In this scenario, if the Garcias do not meet these requirements—such as not having qualifying children, not incurring qualifying expenses for care, or if their income exceeds the limits set by the IRS—they would not be able to claim the credit.

"False" is the correct response because there may be conditions under which they do not qualify, reflecting the need for specific eligibility factors to be met, rather than simply needing to have a child in care or meet somewhat narrower criteria.