Which of the Following Statements Concerning the Credit for Child

question 1

Multiple Choice

Which of the following statements concerning the credit for child and dependent care expenses is not correct?

• A) A taxpayer is not allowed both an exclusion from income and the credit for child and dependent care expenses on the same amount.
• B) A taxpayer is not allowed both a deduction as a medical expense and the credit for child and dependent care expenses on the same amount.
• C) If a taxpayer's adjusted gross income exceeds $43,000, the rate for the credit for child and dependent care expenses is 20%.
• D) If a taxpayer's adjusted gross income exceeds $15,000 but is not over $17,000, the rate for the credit for child and dependent care expenses is 35%.
• E) All of the above statements are correct.

---

Definitions:

Investment

The action or process of allocating resources, usually money, with the expectation of generating an income or profit.

Real GDP

The measure of the value of economic output adjusted for price changes (inflation or deflation), reflecting the real quantity of goods and services produced.

Recession

A notable decrease in economic performance affecting the entire economy, persisting for an extended period beyond several months, is usually observed in metrics such as real GDP, real income, employment, industrial production, and wholesale-retail sales.

Unemployment Insurance

A government program that provides financial assistance to eligible workers who lose their job through no fault of their own.