When D leaves home to go to her job, she pays the neighbor to watch over her 89-year-old mother, M.The latter has lived with D for five years and has only $1,000 includible gross income each year.If D has no taxable income this year and has a $300 dependent care credit, she may

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The dependent care credit is a nonrefundable credit, which means it can only reduce the tax owed to zero. If D has no taxable income, there is no tax to reduce, and thus the credit cannot be refunded, carried back, or carried forward.

When D Leaves Home to Go to Her Job, She