Understanding Taxes - Tax Tutorial: Payroll Taxes and Federal Income Tax Withholding

Module 9: Tax Credit for Child and Dependent Care Expenses

Page 6 of 13

Quick Check

"Answer the following multiple-choice questions about the tax credit for child and dependent care expenses by clicking on the correct answers. To assess your answers, click the Check My Answers button at the bottom of the page."~ Tina the Tax Tutor

A tax credit

A. increases income subject to tax.
B. reduces income subject to tax.
C. increases the tax.
D. reduces the tax.

Troy and Karsyn are married and file a joint return. They are both employed outside of the home. They pay their 16-year-old daughter to care for their 7-year-old son when he gets home from school.

A. Troy and Karsyn qualify to claim the credit for child and dependent care expenses.
B. Troy and Karsyn do not qualify to claim the credit for child and dependent care expenses because the care is provided in their home.
C. Troy and Karsyn do not qualify to claim the credit for child and dependent care expenses because the expenses are paid to their child who is under 19 years of age.
D. Troy and Karsyn do not qualify to claim the credit for child and dependent care expenses because their daughter is a full-time student.