The child and dependent care tax credit is available if you pay someone to watch your child or children so you can work. The credit reduces your income taxes, dollar for dollar. You claim it when you file your taxes.

You can apply the credit to as much as $3,000 in annual expenses if you have one child or up to $6,000 if you have two or more kids.

The credit percentage depends on your adjusted gross income. It ranges from 20 percent if your income (single or joint) is above $43,000 to 35 percent if your income is below $15,000.

To figure your savings, multiply the credit (as a percentage) by your qualified expenses. The credit for a family with $43,000 of income and $5,000 in expenses would be 20 percent or $600 for one child; $1,000 for two or more.

The child care tax credit is separate from the child tax credit.

For more information, go to www.irs.gov and search for Publication 503 (2006), Child and Dependent Care Expenses.