Which of the following statements concerning the credit for child and dependent care expenses is not correct?
A)A taxpayer is not allowed both an exclusion from income and the credit for child and dependent care expenses on the same amount.
B)A taxpayer is not allowed both a deduction as a medical expense and the credit for child and dependent care expenses on the same amount.
C)If a taxpayer's adjusted gross income exceeds $43,000, the rate for the credit for child and dependent care expenses is 20%.
D)If a taxpayer's adjusted gross income exceeds $15,000 but is not over $17,000, the rate for the credit for child and dependent care expenses is 35%.
E)All of the above are correct.

Question

Quizplus · Accepted Answer

The statement in choice D is not correct. If a taxpayer's adjusted gross income exceeds $15,000 but is not over $17,000, the rate for the credit for child and dependent care expenses is 20%, not 35%. The other statements are correct: A taxpayer cannot claim both an exclusion and a credit for the same expenses, and a taxpayer cannot claim both the child and dependent care credit and a deduction for the same expenses as medical expenses. If a taxpayer's adjusted gross income is over $43,000, the credit rate is reduced to 20%.

Which of the Following Statements Concerning the Credit for Child