 |
Case Study 7: Does this Taxpayer Qualify?Bill, 61, and Helen, 62, are married and have lived together for 20 years. Earlier in the interview with Bill, you learned that Helen, who is too sick to work, requires 24-hour-care. You wonder whether he can take the child and dependent care credit. Bill is claiming his granddaughter Lucy as a dependent, as noted in the Marital Status and Household Information section of his intake and interview sheet. She is 18 and takes care of Helen. This is how a volunteer would apply the questions from the Credit for Child and Dependent Care Expenses screening sheet in the Volunteer Resource Guide, Tab G, Nonrefundable Credits to find out whether Bill can take the credit. Does Bill qualify for the credit? 
Click here for an explanation. Bill does not pass the work-related expenses test because his expenses were paid to a dependent relative. The volunteer should indicate that the taxpayer doesn't qualify for this credit (with the reason) on the intake and interview sheet. |
|||||||||||||||||||||||||||||||||||||||||||||
Credit for Child and Dependent Care Expenses Workout
Five Eligibility Tests
- Publication 4012, Child and Dependent Care Credit Expenses Tip
- Publication 4012, Credit for Child & Dependent Care Expenses screening sheet
Publication 4012, Child and Dependent Care Credit Expenses Tip
Publication 4012, Credit for Child & Dependent Care Expenses screening sheet