Situation 1 - 1 Credit for Child and Dependent Care...

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1 Credit for Child and Dependent Care Expenses In order for Ashby and Curtis to claim the nonrefundable credit for child care expenses, the internal revenue service requires them to “file either a form 1040 or form 1040A (or 1040NR) but not a form 1040EZ (or 1040NR).” (IRS.gov, p. 2). In addition, Ashby and Curtis must meet all the guidelines specified by the Internal Revenue Service. Ashby and Curtis “must file a joint return since they are married, unless an exception applies.” (p. 2). Ashby and Curtis have a two year old son, Jason, who is a qualifying dependent under the age of thirteen, and will be identified on the form used to claim the Child and dependent care tax credit. Since Cutis is an employed professional and Ashby will be considered a self employed artist who will sell her art, they both meet the employment requirements specified by the Internal Revenue Service. However, according to the Internal Revenue Service if Ashby does not sell any of her artwork and has no earned income for the year, she and Curtis will not be able to take the credit. (p. 6). Ashby and Curtis plan for their son to attend a Nursery school program several times a week while both parents are at work. Since the
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This note was uploaded on 02/08/2010 for the course ACC317 adv. feder taught by Professor Man during the Spring '10 term at Strayer.

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Situation 1 - 1 Credit for Child and Dependent Care...

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