Understanding Taxes - Simulation: Claiming the Tax Credit for Child and Dependent Care Expenses

Module 9: Tax Credit for Child and Dependent Care Expenses

Page 3 of 25

Sim 9: Claiming the Tax Credit for Child and Dependent Care Expenses

You and Susan receive your Forms W-2 from your employers. You earned $48,215 from your job. Susan earned $17,211 from her part-time job.

Note: Your employer is required to furnish your W-2 by January 31!

To review your W-2, click My Form W-2.

To review Susan's W-2, click My Spouse's Form W-2.

Name: Albert Wentworth
Employment: Financial planner
Marital Status: Married
Spouse's name (if any): Susan Wentworth, social worker
Children: Rachel, age 5, and Paul, age 2
U.S. citizen: Yes
Other: The children lived with you and Susan during the entire tax year in the family home. No one except Rachel and Paul depends on you and Susan for income or support. No one else can claim you or Susan as dependents. While you and Susan are at work, Rachel and Paul stay at Anytown Daycare Center, whose tax identification number is 10-0124578. Rachel and Paul did not have any income for the year. You and Susan provided all of the support for Rachel and Paul. You and Susan provided all of the costs to maintain the family home. During the tax year, you paid $1500.00 each for the care of the children while you and Susan were at work. Neither you nor Susan received dependent care assistance from your employers.

You are married to Susan. You have two children, Rachel, age 5, and Paul, age 2. You live in the United States; you, your wife, and your children are all U.S. citizens. Neither you, nor Susan, can be claimed as a dependent on any other person's tax return.

You are a financial planner. Susan is a social worker. The children lived with you and Susan during the entire tax year in the family home. No one except Rachel and Paul depends on you and Susan for income or support. No one else can claim you or Susan as dependents. While you and Susan are at work, Rachel and Paul stay at Anytown Daycare Center, whose tax identification number is 10-0124578.

It's the end of the tax year. Rachel and Paul did not have any income for the year. You and Susan provided all of the support for Rachel and Paul. You and Susan provided all of the costs to maintain the family home. During the tax year, you paid $1,500 each for the care of the children while you and Susan were at work. Neither you nor Susan received dependent care assistance from your employers.

To review the scenario information during the simulation click My Profile.

"Review the Scenario
Information using
My Profile"

~Tina the Tax Tutor