Sarah and David Johnston paid $5,500 during the year for child care for their three children, aged 3, 5, and 7. Her annual salary was $8,000 and his annual salary was $30,000. Sarah can deduct the $5,500 paid from her income.

Question

Quizplus · Accepted Answer

The amount paid for child care cannot be directly deducted from income. Instead, it may qualify for a tax credit through the Child and Dependent Care Credit, which is subject to certain limits and conditions, not a direct deduction from income.

Sarah and David Johnston Paid $5,500 During the Year for Child