These credits are quite different. First, the child tax credit. The purpose of this credit is simply to provide tax relief for parents with dependent children. If you're eligible, you may be able to take a credit on your federal income tax return of up to $1,000 per child in tax years 2003 and 2004. A qualifying child must possess all of the following characteristics:

• Under age 17 at the close of the tax year
• Your dependent
• A U.S. citizen or resident
• Either your son or daughter (or a descendant of either), stepson or stepdaughter, or an eligible foster child

You must reduce your credit if your income lies above a certain threshold amount (given your filing status).

The other credit--the child and dependent care tax credit--offers relief to working people who must pay someone to care for their children or other dependents. It is a tax credit for up to 35 percent of certain expenses incurred when caring for your dependent child (under age 13), your disabled spouse, or your disabled dependent so that you (and your spouse, if married) may work or look for work.

For married persons to qualify for the credit, both spouses must work outside the home, or one must work outside the home while the other is a full-time student, is disabled, or is looking for work (provided that the spouse looking for work has earnings during the year). The credit is also available if you're a single parent or a divorced custodial parent.

Your filing status must be single, head of household, qualifying widow(er) with dependent child, or married filing jointly; married filing separately will not qualify. There are limitations on the amount of the credit, and several requirements apply.

For more information, consult a tax professional.