Income Tax Fundamentals 2020
38th Edition
ISBN: 9780357391129
Author: WHITTENBURG
Publisher: Cengage
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 7, Problem 4MCQ
To determine
Introduction: Expenses incurred on child care and certain other dependents are compensated by way of a child and dependent care credit. The eligibility criteria for this is the dependent must be either under the age of 13 or should be an incapable dependent or spouse of any age. If the child belongs to divorced parents, then the taxpayer taking care of a child can claim the credit.
To choose: The correct option that does not qualify as a child care expense for the purposes of the child and dependent care credit
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
A qualifying individual for the purposes of the child and dependent care expenses credit includes all of the following except:
Multiple Choice
A dependent under the age of 13.
An adult child who is incapable of caring for himself/herself, who lived with the taxpayer for at least half of the year.
A dependent child, age of 17 who attends school full time.
A spouse who is incapable of caring for himself/herself, who lived with the taxpayer for at least half of the year.
Which of the following statements is false regarding the earned income credit (EIC)?
Multiple Choice
If certain requirements are met, a taxpayer may receive advance payments of EIC.
Maximum amount of the credit depends on the earned income and number of children.
A taxpayer without children cannot claim the credit.
The credit is refundable.
Greg has self-employment income in 2021 of $96,000. The self-employment tax is:
(round to the nearest dollar)
Chapter 7 Solutions
Income Tax Fundamentals 2020
Ch. 7 - Russ and Linda are married and file a joint tax...Ch. 7 - Jennifer is divorced and files a head of household...Ch. 7 - Prob. 3MCQCh. 7 - Prob. 4MCQCh. 7 - Which of the following is not a requirement to...Ch. 7 - For purposes of determining income eligibility for...Ch. 7 - Prob. 7MCQCh. 7 - Prob. 8MCQCh. 7 - Which of the following costs is not a qualified...Ch. 7 - Prob. 10MCQ
Ch. 7 - Prob. 11MCQCh. 7 - Prob. 12MCQCh. 7 - Joan, a single mother, has AGI of $61,500 in 2019....Ch. 7 - Prob. 14MCQCh. 7 - Prob. 15MCQCh. 7 - Prob. 16MCQCh. 7 - Prob. 17MCQCh. 7 - Prob. 18MCQCh. 7 - Prob. 19MCQCh. 7 - Prob. 20MCQCh. 7 - Virginia and Richard are married taxpayers with...Ch. 7 - Calculate the total child and other dependent...Ch. 7 - Prob. 2PCh. 7 - Prob. 3PCh. 7 - Prob. 4PCh. 7 - Prob. 5PCh. 7 - Prob. 6PCh. 7 - Prob. 8PCh. 7 - Prob. 9PCh. 7 - Clarita is a single taxpayer with two dependent...Ch. 7 - Prob. 12PCh. 7 - Prob. 13PCh. 7 - Marty and Jean are married and have 4 -year-old...Ch. 7 - Prob. 15PCh. 7 - Prob. 16PCh. 7 - Prob. 17PCh. 7 - Prob. 18PCh. 7 - Janie graduates from high school in 2019 and...Ch. 7 - Prob. 20PCh. 7 - Prob. 21PCh. 7 - Carl and Jenny adopt a Korean orphan. The adoption...Ch. 7 - Prob. 23PCh. 7 - Prob. 24PCh. 7 - Prob. 25P
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Which of the following employees would not be exempt from Social Security and Medicare taxes on wages paid for household work? The taxpayer's 16 -year-old daughter The taxpayer's wife The taxpayer's 20 -year-old sister The 14 -year-old babysitter from down the streetarrow_forwardWhich of the following is true about the self-employed health insurance deduction? The deduction can be claimed when a subsidized employer health insurance plan is also available. The deduction can be claimed if the taxpayer has an overall business loss from self-employment. Long-term care premiums may not be deducted within specified dollar limitations based on age. The self-employed health insurance deduction is a for AGI deduction. Dental insurance is not included as deductible self-employed health insurance.arrow_forwardWhich of the following is not a requirement to receive the premium tax credit for health care? Health care through the employer is not available Health insurance is purchased through the state or federal exchange Income must be no greater than 200 percent of the federal poverty line The taxpayer cannot be claimed as a dependentarrow_forward
- Which of the following items would be included in the gross income of the recipient? Insurance payments for medical care of a dependent child Insurance payments for loss of the taxpayer's sight Season tickets worth $2,000 given to a son by his father Payments to a student for working at the student union food court Lodging provided to a worker on a remote oil rigarrow_forwardWhich of the following statements concerning the credit for child and dependent care expenses is not correct for 2022? A. If a taxpayer is a full-time student with no earned income, no credit for child and dependent care expenses can be claimed. B. A taxpayer is not allowed both a deduction as a medical expense and the credit for child and dependent care expenses on the same amount. C. A taxpayer is not allowed both an exclusion from income and the credit for child and dependent care expenses on the same amount. D. If a taxpayer’s adjusted gross income is over $43,000, the rate for the credit for child and dependent care expenses is 20%.arrow_forwardQuestion 3 of 15. A taxpayer must file Form 8862 to claim certain credits after disallowance by the IRS. Which credit is affected by this requirement? Adoption Credit. Child and Dependent Care Credit. Earned Income Credit. Residential Energy Credit. Mark for follow uparrow_forward
- 24. Which of the following, if any, correctly describes the earned income credit? a. Would be available regardless of the amount of the taxpayer's adjusted gross income. b. Is not available to a surviving spouse. c. Requires a taxpayer to have a qualifying child to take advantage of the credit. d. Is a refundable credit.arrow_forwardWhat is the maximum amount of qualified expenses that a taxpayer with one qualifying child can claim for the basis of the Form 2441 credit for dependent care for TY2023? a. $6,000 b. $5,000 c. $3,000 d. There is no limit to the expensesarrow_forwardA taxpayer will need to file Schedule A, Itemized Deductions, to deduct which of the following? An amount contributed to a traditional IRA. State and local income tax withheld from the taxpayer's regular pay. Student loan interest paid on a qualified student loan. Unreimbursed business expenses incurred by an eligible educator, including amounts paid for classroom supplies, books, and computer equipment.arrow_forward
- Which one of the following child or dependent care expenses qualifies as an employment-related expense? a.Payments to a full-time nursing home for your dependent mother-in-law b.who is NOT mentally or physically incapacitated. c.Payments for transportation to and from nursey school. d.Payments to a nursery school for your preschool children. e.Payments to a lawn service when a child is cared for in home.arrow_forwardThe definition of qualified child for the Child Tax Credit is the same as the General Definition of a Qualified Child EXCEPT FOR, which of the following (more than one may apply) Select one or more: a. A full-time student over the age of 17 but less than 24 is not eligible to be claimed for the Child Tax Credit. b. A qualified child must be under 17 for the Child Tax Credit c. A qualified child cannot be claimed for the Child Tax Credit with only an ITIN (Taxpayer Identification) d. A sister or brother is not eligible for the Child Tax Credit e. A disabled person who is over age 17 is not eligible to be claimed for the Child Tax Creditarrow_forwardA taxpayer will need to file a schedule a itemized deduction to with of the following An amount contributed to a traditional ira State and local income tax with held Studen loan interest on a paod qualified student lona Unreimbursed business expense incures by an eligible educator including pain class room suppliesarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Individual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENT
Individual Income Taxes
Accounting
ISBN:9780357109731
Author:Hoffman
Publisher:CENGAGE LEARNING - CONSIGNMENT