Question

A taxpayer paid child care expenses totaling $8000. $2000 of the expense was paid by the taxpayer's employer as a dependent care benefit and $1500 was paid by Adult and Family Services (a state-run program). The eligible expenses for calculating the WFC are:

a. $4500.
b. $6000.
c. $6500.
d. $8000.

Answer 1

The eligible expenses for calculating the WFC are $6000.

Step-by-step explanation:

The eligible expenses for calculating the WFC are $6000.

The taxpayer paid child care expenses totaling $8000, but $2000 was paid by the taxpayer's employer as a dependent care benefit and $1500 was paid by Adult and Family Services, a state-run program. Therefore, the eligible expenses for calculating the Workforce Credit (WFC) would be the remaining amount that the taxpayer paid out of pocket, which is $6000.

Answer: $6000