If an individual is not employed and has no earned income, is it possible to take a child and dependent care credit for otherwise qualifying child and dependent care expenses? Explain.

A. If an individual is unemployed and has no earned income, it is not possible to receive a child and dependent care credit because the individual is not employed.

B. If an individual is unemployed and has no earned income, it is not possible to receive a child and dependent care credit because eligible expenses are limited to earned income.

C. If an individual is unemployed and has no earned income, it is generally not possible to receive a child and dependent care credit because eligible expenses are limited to earned income. One exception to this rule applies to married taxpayers. A spouse who is either a full-time student or incapacitated is deemed to have earned income of $250 per month (one qualifying dependent) or $500 per month (two or more qualifying dependents).

D. If an individual is unemployed and has no earned income, it is generally not possible to receive a child and dependent care credit because eligible expenses are limited to earned income. One exception to this rule applies to married taxpayers. A spouse who is either a full-time student or incapacitated is deemed to have earned income of $500 per month (one qualifying dependent) or $1,000 per month (two or more qualifying dependents).

Question

If an individual is not employed and has no earned income, is it possible to take a child and dependent care credit for otherwise qualifying child and dependent care expenses? Explain.

A. If an individual is unemployed and has no earned income, it is not possible to receive a child and dependent care credit because the individual is not employed.

B. If an individual is unemployed and has no earned income, it is not possible to receive a child and dependent care credit because eligible expenses are limited to earned income.

C. If an individual is unemployed and has no earned income, it is generally not possible to receive a child and dependent care credit because eligible expenses are limited to earned income. One exception to this rule applies to married taxpayers. A spouse who is either a full-time student or incapacitated is deemed to have earned income of $250 per month (one qualifying dependent) or $500 per month (two or more qualifying dependents).

D. If an individual is unemployed and has no earned income, it is generally not possible to receive a child and dependent care credit because eligible expenses are limited to earned income. One exception to this rule applies to married taxpayers. A spouse who is either a full-time student or incapacitated is deemed to have earned income of $500 per month (one qualifying dependent) or $1,000 per month (two or more qualifying dependents).

Accepted Answer

The Answer is in the image, click to view ...

Question

If an individual is not employed and has no earned income, is it possible to take a child and dependent care credit for otherwise qualifying

Step by Step Solution

Step: 1

Get Instant Access to Expert-Tailored Solutions

Step: 2

Step: 3

Ace Your Homework with AI

Recommended Textbook for

IATF 16949 2016 Plus ISO 9001 2015 Audit Guide And Checklist With ISO 9001 Customer Specific Core Tools And CQI Requirments

Students also viewed these Accounting questions

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question