Question

Joe and Teresa are married and they both work outside the home. They have three children ages 18, 6 and 2. Also, Joe's 20 year old niece is a full-time student who lived with them all year and is claimed as their dependent. Which of the following expenses that Joe and Teresa paid qualify for purposes of claiming the child and dependent care credit?a) Payments to their 18 year old daughter to care for her 2 year old sister.b) Payments made to Joe's mother who lives with them but does not qualify as their dependent.c) Payments to a private school for their 6 year old to attend first grade.d) Payments to Joe's niece.e) None of the above expenses qualify.

Answer 1

The correct answer is B: Payments made to Joe's mother who lives with them but does not qualify as their dependent.

Further Explanation:

The Child and Dependent Care Tax Credit can be used when filing taxes if all the requirements are met. In this case, Joe's mother will fit the requirement and they can use her services to qualify for the credit. According to the IRS website, they can not use a dependant or a child of their own, not a dependant,  under the age of 19 to get this credit. However, they can use someone in the home as long as they are not listed as a dependant on the tax form.

To get the Child and Dependent Care Tax Credit the family must meet several requirements such as;

• Paying someone to watch the qualifying child
• The care provider is not a dependent
• Child care was paid for so the parents could work, go to school, or was disabled.

Learn more about the Child Tax Credit at  brainly.com/question/12845462

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