Harry and Wilma Are Married and File a Joint Income

question 34

Multiple Choice

Harry and Wilma are married and file a joint income tax return.On their tax return,they report $44,000 of adjusted gross income ($20,000 salary earned by Harry and $24,000 salary earned by Wilma) and claim two exemptions for their dependent children.During the year,they pay the following amounts to care for their 16-year old son and 6-year old daughter while they work. Harry and Wilma may claim a credit for child and dependent care expenses of:

• A)$840.
• B)$1,040.
• C)$1,200.
• D)$1,240.
• E)None of the above.

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Definitions:

Duty Of Care

A legal obligation requiring individuals to exercise a standard of reasonable care while performing acts that could foreseeably harm others.

Unforeseeable Risks

Risks that cannot reasonably be anticipated or predicted, often affecting contracts or liability.

Reasonable Person Standard

A measurement of the way members of society expect an individual to act in a given situation.

Privilege

A special right, advantage, or immunity granted or available only to a particular person or group.