Question

Select all that apply. The child and dependent care credit is available for expenses paid to provide care for which of the following individuals?

a) Children under 13
b) Disabled spouse
c) Dependent parents
d) Siblings over 18

Answer 1

The Child and Dependent Care Credit covers expenses for caring for children under age 13, a disabled spouse, and dependent parents, but not siblings over 18 unless they are disabled and dependent.

Step-by-step explanation:

The Child and Dependent Care Credit is a tax benefit provided by the federal government to help offset some of the costs associated with caring for qualifying individuals. The credit can be available for expenses paid to provide care for the following individuals:

• Children under the age of 13
• A disabled spouse who is not able to care for themselves
• Dependent parents, provided they meet certain criteria such as not being able to care for themselves

However, siblings over the age of 18 do not qualify for the Child and Dependent Care Credit unless they are disabled and meet specific criteria showing they are financially dependent on the taxpayer for care.

It's important to note that the Child Tax Credit (CTC), which has been expanded under President Joe Biden's American Rescue Plan, is different from the Child and Dependent Care Credit. The CTC aims to support families by offering advanced payments to reduce child poverty, whereas the Child and Dependent Care Credit is specifically used for expenses related to the care of qualifying individuals.