Tax Credit for Families Act of 1989

Tax Credit for Families Act of 1989 - Amends the Internal Revenue Code to allow a family tax credit for custodial parents of children under the age of six. Provides for a phase-out of such credit for taxpayers whose earned income exceeds $10,000.

Requires employers to make advance payments of such credit to employees who provide the employer with a family tax credit eligibility certificate.

Provides for the dependent care credit to apply only to the care of individuals who are handicapped.

Repeals the tax exclusion for dependent care assistance programs.