Briefly explain how to calculate the child and dependent care credit and how the calculation for the credit is affected if the taxpayer's spouse does not work but is a full-time student instead.

The credit is based on a percentage,determined by the taxpayer's AGI,multiplied by the qualified expenses for caring for a dependent.Qualifying expenses cannot exceed $3,000 for one qualifying individual and $6,000 for two or more.The amount is further limited to the earned income of the taxpayer or taxpayer's spouse if smaller.If a spouse is a full-time student with no earned income,that spouse is deemed to have earned $250 for one qualifying person ($500 for two or more),per month,that he or she attended school.For example,if a spouse attended school full-time for 9 months and the couple has one child,the qualifying expenses would be limited to $2,250 ($250 × 9 months).