Concerning the credit for child and dependent care
I.If a taxpayer's adjusted gross income exceeds $43,000, the child and dependent care credit rate is reduced to 20%.
II.No credit is allowed for expenses incurred outside the home.

Question

Concerning the credit for child and dependent care
I.If a taxpayer's adjusted gross income exceeds $43,000, the child and dependent care credit rate is reduced to 20%.
II.No credit is allowed for expenses incurred outside the home.
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Quizplus · Accepted Answer

Statement I is correct. The child and dependent care credit rate is reduced to 20% if the taxpayer's adjusted gross income exceeds $43,000. However, statement II is incorrect as the credit can be allowed for both in-home and out-of-home care expenses.

Concerning the Credit for Child and Dependent Care