Assume the State of California Plans to Amend Its Personal

question 69

Multiple Choice

Assume the state of California plans to amend its personal income tax laws to allow parents to reduce their tax by the cost of infant car seats. Which of the following statements is true?

• A) The amendment creates a tax preference for parents who purchase infant car seats.
• B) The amendment is intended to change social behavior.
• C) The amendment increases the neutrality of the tax law.
• D) Both the amendment creates a tax preference for parents who purchase infant car seats and is also intended to change social behavior are true.

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Definitions:

Adoption Benefits

Financial assistance and tax benefits provided to individuals or families during the adoption process.

Adoption Credit

A tax credit offered to adoptive parents to offset some costs associated with the adoption process.

Modified AGI

An adjustment to Adjusted Gross Income (AGI) for specific items, affecting eligibility for certain tax benefits.

Qualified Expenses

These are specific expenses that meet criteria set by tax laws or other regulations for eligibility for tax benefits or deductions.