A nonrefundable tax credit allowed for a percentage of the expenses incurred for household services or care of a child or other dependent, where a taxpayer maintains a household that includes one or more dependents who are under 13 years of age or mentally or physically incapacitated. The percentage of credit varies inversely with the taxpayer's adjusted gross income (AGI) between $15,000 and $43,000.
A plan under which employees may make tax-free salary-reduction contributions to a medical or dependent care reimbursement plan, or to purchase group health insurance or life insurance coverage on a pretax basis.
