The Exclusion for Dependent Care Assistance Plans Cannot Exceed ________

question 123

Multiple Choice

The exclusion for dependent care assistance plans cannot exceed ________ for a taxpayer who is married but filing as "married filing separately".

• A)$5,200
• B)$2,000
• C)$3,500
• D)$2,500

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Definitions:

IRC Section 121

A provision in the Internal Revenue Code that allows homeowners to exclude up to $250,000 ($500,000 if married filing jointly) of capital gains on the sale of their primary residence, subject to certain conditions.

Receipt of Boot

Tax term referring to non-like-kind property or cash received in an exchange, which may trigger taxable gain.

Like-kind Exchange

A tax-deferred exchange of similar properties under section 1031 of the U.S. Tax Code.

Installment Method

A tax method allowing income recognition from sales or transfers of property over time as the seller receives payments.