True or False? Tom can claim the Child and Dependent Care Credit for David, Stella's son.

The Child and Dependent Care Credit allows qualifying taxpayers to receive tax relief for expenses incurred while caring for a qualifying child or dependent so they can work or look for work. For a taxpayer to claim this credit, the individual must be the custodial parent or have a qualifying relationship with the child or dependent.

In this case, the reason why claiming the Child and Dependent Care Credit for David is incorrect is because David is not Tom's qualifying child. A qualifying child must be the taxpayer's child, stepchild, or foster child, among other criteria. If Tom does not meet this relationship requirement, he cannot claim the credit for David, regardless of his contributions to household expenses, his filing status, or whether he is a caregiver.

This highlights the importance of understanding the relationship criteria laid out in the tax regulations for claiming various credits like the Child and Dependent Care Credit.