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 but Marion has no earned income. She works as a volunteer for the local hospital. When Marion is 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 but Marion has no earned income. She works as a volunteer for the local hospital. When Marion is 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

To qualify for the child and dependent-care credit, the taxpayer must have earned income. In statement I, Marion has no earned income, so they do not qualify. In statement II, Michael has earned income and pays for the care of a dependent, qualifying him for the credit.

Which of the Following Individuals or Couples Qualify for the Child