The Child Care Credit Is Always Computed Using the Applicable

question 41

True/False

The child care credit is always computed using the applicable percentage, which is 30% times the lesser of employment-related expenses or earned income.

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Definitions:

Private Cost

Private cost is the cost incurred by an individual or company in producing goods or services, excluding externalities.

External Benefit

A positive effect of a transaction or activity on a third party who did not choose to incur that benefit.

Externalities

Financial implications or effects that influence bystander third parties and may be either beneficial or harmful.

Incentives

Factors that motivate or encourage individuals to perform actions or make decisions.