Fundamentals of Taxation 2011 4th Edition by Ana Cruz, Debra Prendergast, Dan Schisler, Michael Deschamps

Exercise 5

A taxpayer maintains a household and is entitled to a dependency exemption for an incapacitated adult child. The child lives during the week at an adult day care center and on the weekends at home with the taxpayer. The taxpayer pays a fee to the center so the taxpayer can be gainfully employed. Does the fee qualify for treatment as a qualifying expense for purposes of the child and dependent care tax credit? Why or why not?