The expenses eligible for the credit are the lowest of:

• the actual expenses paid
• the single taxpayer's earnings
• if married, the lower-paid spouse's earnings

Note: The income of a spouse who is a full-time student or incapable of self-care is considered to be $250 per month (one qualifying person) or $500 per month (two or more qualifying persons).

The overall limit is reduced, dollar-for-dollar, by any dependent care benefits received from the employer.