Josef has two daughters, Paige, age 4, and Natalie, age 10. Josef paid a local day care provider $6,000 for Paige from January through December and $4,000 for Natalie from January through June. Josef's earned income is $70,000. Assuming all other requirements are met, how much expense can be used to calculate Josef's 2022 Child and Dependent Care Credit?

$6,000

$8,000

$10,000

Desiree is single. Her modified adjusted gross income is $70,000. She purchased a previously-owned electric vehicle on January 15, 2023 for $20,000 from a dealer. The vehicle meets all the requirements for the Previously-Owned Clean Vehicle Credit. What is the maximum credit amount Desiree may qualify for on her 2023 tax return?

$1,000

$4,000

$6,000

$7,500

If a taxpayer claiming the American Opportunity Tax Credit has their tax liability reduced to zero, what is the maximum amount they may receive as a refundable credit?

25% of the credit, up to $2,000.

40% of the credit, up to $1,000.

100% of the first $4,000 of qualified education expenses

Which of the following will decrease the original basis of property to determine the adjusted basis?

Capital improvements.

Casualty loss deductions.

Legal fees.