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).