Question

For purposes of claiming the Earned Income Credit, a qualifying child could be any of the

following except

A. Your 20-year-old unemployed child.

B. Your child who is less than 19 years old.

C. Your 22-year-old grandson who is a full-time student.

D. Your 40-year-old permanently disabled stepson.

All of the following qualify as work-related expenses for computing the child and dependent

care credit except

A. The parent-employer’s portion of Social Security tax paid on wages for a person to take care

of dependent children while the parents work.

B. Payments to a nursery school for the care of dependent children while the parents work.

C. The cost of meals for a housekeeper who provides necessary care for a dependent child

while the parents work.

D. Payments to a housekeeper who provides dependent care while the parent is off from work

because of illness.

Mr. Bently works and maintains a home for himself, his wife, and their two children. During the

current year, Mr. Bently had earned income of $50,000. They file a joint return and have itemized

deductions of $8,200. Mrs. Bently was a full-time student for 5 months in the current year and had

no earned income. They paid $3,000 of qualified work-related expenses while Mrs. Bently was a

student. What is the amount of child and dependent care credit for the current year?

A. $0

B. $500

C. $625

D. $875

Mr. and Mrs. Donegan are filing a joint return for the current year. Mr. Donegan was employed

the full year. Mrs. Donegan was a full-time student for 9 months and was not employed at any

time during the year. For the 9 months that Mrs. Donegan was a student, she paid $500 per

month to a child care center to care for their 4-year-old daughter. For purposes of the Child Care

Credit, Mrs. Donegan is considered to have current-year earned income of

A. $2,250

B. $3,000

C. $4,500

D. $6,000

Answer 1

Required 1

A qualifying Child is own child, stepchild or grandchild having age less than 19 years or upto 24 years if full time student or any age if permanently and totally disabled.

So the answer is:

A. Your 20-year-old unemployed child.

Required 2

Dependemt and child care credit is allowed to enable an individual to be gainfully employed or at least look for work.

So the answer is:

D. Payments to a housekeeper who provides dependent care while the parent is off from work because of illness.

Required 3

In case of married filling jointly, Child Care credit is allowed on the income of the lower earning spouse.

Since Mrs. Bently does not have any earned income during the year, the amount of child credit allowed would be $0.

So the answer is

A. $0

Required 4

$500 * 9 months = $4500

So the answer would be

C. $4,500