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2021 Federal Tax Law Update Test for Circular 230 - Scenario 2: Chloe Carlow - Question 1 of 3. Interview Notes Chloe, age 48, divorced
2021 Federal Tax Law Update Test for Circular 230 - Scenario 2: Chloe Carlow - Question 1 of 3. Interview Notes Chloe, age 48, divorced her husband in 2017. Chloe's 4 year old grandson, Marcus, has been living with her since his parents were incarcerated in August 2019. Chloe provided all the support for Marcus and all the costs of keeping up their home in 2021. Chloe worked full time and earned $53,000. She received no other income in 2021. Marcus attends daycare while Chloe works. Chloe received a statement from the daycare provider showing she paid $5,980 for Marcus' care for the year. She did not pay any 2020 expenses in 2021. Chloe received the third Economic Impact Payment (EIP 3) of $2,800 in 2021. Chloe received advance payments of the Child Tax Credit totaling $1,800 in 2021 Chloe and Marcus are both U.S. citizens, lived in the United States all year, and have valid Social Security numbers. No one else lives in the household with them. en 4. After reconciling the advance payments, how much Child Tax Credit will Chloe be able to claim on her 2021 federal income tax return? OA. $3,600 OB. $3,000 OC. $2,000 OD. $1,800 Help 1 Back Next Skip First Skipped Question Next Skipped Question Interview Notes Chloe, age 48. divorced her husband in 2017. Chloe's 4 year old grandson, Marcus, has been living with her since his parents were incarcerated in August 2019. Chloe provided all the support for Marcus and all the costs of keeping up their home in 2021. Chloe worked full time and earned $53,000. She received no other income in 2021. Marcus attends daycare while Chloe works. Chloe received a statement from the daycare provider showing she paid $5,980 for Marcus' care for the year. She did not pay any 2020 expenses in 2021. Chloe received the third Economic Impact Payment (EIP 3) of $2,800 in 2021. Chloe received advance payments of the Child Tax Credit totaling $1,800 in 2021. Chloe and Marcus are both U.S. citizens, lived in the United States all year, and have valid Social Security numbers. No one else lives in the household with them. 5. What amount can Chloe claim as qualified dependent care expenses? OA. $3,000 OB. $5,980 OC. $6,000 OD. $8,000 2
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