Note:
Eugenia Hargrave, Income Tax Treatment of Child and Dependent Care Costs: The 1981 Amendments, 60 Texas L. Rev. 321 (1982).
 

Abstract:
This Note reviews the changes effected by the Economic Recovery Tax Act (ERTA) of 1981 and suggests measures to ensure its effectiveness. It reviews the history of child and dependant care costs as deductible expenses and describes the evolution of the deduction-credit. Further, it addresses the practical problems the IRS faces as it drafts regulations to implement the eligibility of adult day care expenses and recommends a broad approach. The Note demonstrates that Congress intended the credit to perform dual functions of recognizing child and dependent care costs as expenses of earning a living and subsidizing the costs of such services for lower-income taxpayers. In conclusion, it suggests measures that would give equal importance to both goals.