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

Question

In which of the following situations may the taxpayer take an education expense on Schedule C? a.John, a plumber by trade, is taking classes to qualify as an electrician so he may take on more complex contractor jobs. b.Henry, a self-employed administrative assistant, is taking an advanced Word computer program class through an adult school program. c.Ann Marie, a hostess at a restaurant, is taking a review course in order to pass the certified financial planner examination. d.Barbie, a salesperson, is flying on numerous commercial airplanes in order to observe the flight attendants so that she may improve her public relations skills.

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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

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In which of the following situations may the taxpayer take an education expense on Schedule C? a.John, a plumber by trade, is taking classes to qualify as an electrician so he may take on more complex contractor jobs. b.Henry, a self-employed administrative assistant, is taking an advanced Word computer program class through an adult school program. c.Ann Marie, a hostess at a restaurant, is taking a review course in order to pass the certified financial planner examination. d.Barbie, a salesperson, is flying on numerous commercial airplanes in order to observe the flight attendants so that she may improve her public relations skills.

What 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 expenses

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