True or False? Barb can take the Child and Dependent Care Credit despite the daycare's tax-exempt status.

Barb can indeed take the Child and Dependent Care Credit even if the daycare provider is tax-exempt. The Child and Dependent Care Credit is designed to assist taxpayers in covering the costs of care for dependents while they work or look for work. One of the key requirements for claiming this credit is that the care must be provided for a qualifying individual, such as a child under the age of 13.

The tax-exempt status of the daycare does not disqualify the taxpayer from claiming the credit, as long as the care meets the necessary qualifications set by the IRS. This includes ensuring that the care allows the taxpayer to work or look for work and counting any costs incurred for the care of qualifying individuals. The requirement for the provider's taxpayer identification number (TIN) is for enhanced verification but is not a barrier to claiming the credit if the daycare is tax-exempt. Thus, the correct conclusion is that Barb can take the credit despite the daycare's tax-exempt status.