Dependent care deduction

(A) In general A household shall be entitled, with respect to expenses (other than excluded expenses described in subparagraph (B)) for dependent care, to a dependent care deduction for the actual cost of payments necessary for the care of a dependent if the care enables a household member to accept or continue employment, or training or education that is preparatory for employment.

(B) Excluded expenses The excluded expenses referred to in subparagraph (A) are— (i) expenses paid on behalf of the household by a third party; (ii) amounts made available and excluded, for the expenses referred to in subparagraph (A), under subsection (d)(3); and (iii) expenses that are paid under section 2015(d)(4) of this title or a pilot project under section 2025(h)(1)(F) of this title .