Ch_9_Questions (1) - Income Tax I Name _Christian Yimgnia _...

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Income Tax I Name ___Christian Yimgnia _______ Chapter 9 Questions Explain and/or discuss the following based on reading the chapter and viewing the power points. Be thorough with your answers. You may take all the space you need. 1. Explain the rules for claiming the household and dependent care credit. A credit is allowed up to 35% of employment related expenses for care of qualifying individuals. Job related expenses are allowed up to $3,000, and $1050 maximum credit for individual and up to $6,000, and $2,000 maximum credit for two or more individuals. Household and personal care expenses are considered to be employment related expenses. A qualifying individual can be a child under age 13, or a mentally or physically handicapped dependent or spouse. Expenses may include household services such as babysitting and housekeeping. It also covers outside services such as daycare, as long as the services is in a qualified facility 2. Explain the American Opportunity and Lifetime Learning Credit. The American Opportunity tax credit provides a maximum nonrefundable tax credit of 2,500 per student for each of the first four years after secondary education. The $2,500
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This note was uploaded on 11/26/2011 for the course INCOME TAX 4404 taught by Professor Bulie during the Spring '11 term at University of Minnesota Duluth.

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Ch_9_Questions (1) - Income Tax I Name _Christian Yimgnia _...

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