Lucy and Max,ages 28 and 30,have Earned Income of $30,400

question 72

Multiple Choice

Lucy and Max,ages 28 and 30,have earned income of $30,400 and adjusted gross income of $29,500,500.They spent $4,200 on child care for their young son so that they could both work part time and finish their college degrees.Which of the following tax credits could reduce their taxes?

• A)Dependent care credit
• B)Earned income credit
• C)Both dependent care credit and earned income credit
• D)Neither dependent care credit nor earned income credit

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Definitions:

ABS Circuits

Electrical circuits within an Anti-lock Braking System designed to monitor and control wheel speed and braking force.

Solenoids Actuating

Solenoids actuating refers to solenoids being triggered or operated, which then actuate or move other mechanical components through electromagnetic force.

Self-Test

A diagnostic procedure or check that a system performs on itself to ensure it is operating correctly.

Modulator Valves

Valves that modulate the pressure of fluids in systems such as automatic transmissions and ABS braking systems, for controlled operation.