Which of the following individuals or couples qualify for the child and dependent-care credit?
I.Jeff and Marion are married with 2 children ages 5 and 7.Jeff earns $57,000 and Marion is a part-time graduate student at the local university and also works as a volunteer for the local hospital.When Marion is in class or working as a volunteer,they hire their neighbor to care for the children.During the year they paid $1,200 to their neighbor.
II.Michael is single and earns $75,000.Michael pays $10,000 for a nurse to help care for his father who is disabled and lives with him.Michael is entitled to the dependency exemption for his father.

Question

Which of the following individuals or couples qualify for the child and dependent-care credit?
I.Jeff and Marion are married with 2 children ages 5 and 7.Jeff earns $57,000 and Marion is a part-time graduate student at the local university and also works as a volunteer for the local hospital.When Marion is in class or working as a volunteer,they hire their neighbor to care for the children.During the year they paid $1,200 to their neighbor.
II.Michael is single and earns $75,000.Michael pays $10,000 for a nurse to help care for his father who is disabled and lives with him.Michael is entitled to the dependency exemption for his father.
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Quizplus · Accepted Answer

Michael qualifies for the child and dependent-care credit because he pays for the care of a dependent who is physically or mentally incapable of self-care. Jeff and Marion do not qualify because Marion's volunteer work does not count as work-related expenses for the credit.

Which of the Following Individuals or Couples Qualify for the Child