Question

A taxpayer's adjusted gross income is $120,000. Explain if the taxpayer can claim the following independent items for the dependent care credit and if not, why.

(A) The dependent care expenses were paid to the taxpayer's mother.

(B) The dependent care expenses were paid to the taxpayer's 18-year-old son, who is NOT a dependent of the taxpayer.

(C) The taxpayer's only dependent will turn 13 years old on July 15 of the current year.

(D) The dependent-care services were provided for the dependent at the home of a babysitter.

(E) The person who provided the dependent care services spent 50% of his time on household services and 50% of his time on dependent-care services.

Answer 1

Answer are as under

(A) The dependent care expenses were paid to the taxpayer's mother.

Yes dependent care credit can be taken, because mother meet the relationship requirement and there is no age limit for qualifying relatives.

(B) The dependent care expenses were paid to the taxpayer's 18-year-old son, who is NOT a dependent of the taxpayer.

No dependent care credit cannot be taken, because son age exceeds 13 year

(C) The taxpayer's only dependent will turn 13 years old on July 15 of the current year.

Yes credit can be taken

(D) The dependent-care services were provided for the dependent at the home of a babysitter.

Yes credit can be taken

(E) The person who provided the dependent care services spent 50% of his time on household services and 50% of his time on dependent-care services.

No dependent care credit cannot be taken, because 50% of his time is only involve in services