Question

Question 36 (1 point) Which of the following childcare costs can a taxpayer use in computing the child and dependent care credit? 1) Payments made to the taxpayer's 17-year-old daughter to look after her younger brother after school so that the child's parents can both work. Payments made to the taxpayer's mother to look after the taxpayer's children after school so that the taxpayer can work. The taxpayer cannot claim her mother as a dependent. 3) Payments made to a childcare facility. The taxpayer is reimbursed from the employer's dependent care assistance plan for the childcare costs, and the taxpayer excludes the reimbursement from gross income. 4) All of the above childcare costs count in the calculation of the child and dependent care credit. 5) None of the above childcare costs count in the calculation of the child and dependent care credit. nuoti e to search osta e o

Answer 1

(2) is correct. The person providing the care can't be taxpayer's spouse, parent of the qualifying child abd must not be dependent of the taxpayer. Payment made to the taxpayer's mother to look after the taxpayer's children after school so that the taxpayer can work count in the calculation of child and dependent care credit as the taxpayer cannot claim her mother as dependent.

(1) is incorrect. If the taxpayer's child provides care, he or she must be 19 years old by the end of the year and must not be taxpayer's dependent. So, payments made to the 17-year old daughter to look after her younger brother after school so that the chils's parents can both work do not count in the calculation of child and dependent care credit.

(3) is incorrect. Expenses paid or reimbursed by employer cannot be claimed as child tax credit. So, payments made to child care facility which is reimbursed from the enployer's credit dependant care assistant plan will not count in the calculation of child and dependent care credit.