For what reason would a dependent care expense be disallowed for claiming the Child and Dependent Care Credit?

A dependent care expense would be disallowed for claiming the Child and Dependent Care Credit primarily if the care provider is not registered. This requirement underscores the program's emphasis on ensuring that care is provided by legitimate, qualified individuals or facilities. Registered providers typically meet certain standards that help assure parents of the quality and safety of the care being provided to their children or dependents.

Registered care providers can include licensed daycare centers, professional caregivers, or individuals who can demonstrate they meet the necessary regulatory requirements. This registration ensures that the provider adheres to safety regulations and best practices in childcare.

In contrast, care provided in the home is not inherently disallowed as long as the provider meets the necessary criteria. Similarly, excessive hours of care do not disqualify a dependent care expense—as long as the care provided is deemed necessary for the parent's working or seeking work status. Income over the threshold might impact the amount of credit a taxpayer can claim but does not result in outright disqualification.