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Tax Credits for Child and Dependent Care Expense (Module 9)

Tax Credits for Child and Dependent Care Expense (Module 9)

Tax Credits for Child and Dependent Care Expense is a tutorial designed by the Internal Revenue Service to educate tax payers.  The difference between a deducation and credit is explained.  Every few screens Quick Check quizzes are included to assess understanding.


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Dennis Vanairsdale
Dennis Vanairsdale (Faculty)
15 years ago
I really like the concept of the IRS tutorials but I found a couple of problems with this tutorial: 1. Tax Deduction vs. Tax Credit The second box comparing credits and deductions with credits seems to have an erroneous label. It says: "Without Deduction Without Credit" Amount of tax $1,470 Comment: It seems the right-hand column should be labeled With Deduction, Without Credit. 2. Also, here is some language from the tutorial: The following expenses are not allowed: • services of a gardener or chauffeur • schooling for a child in the first grade or above • schooling for a child below first grade unless the cost is incidental to the schooling, and cannot be separate from total cost • overnight camp Here is language from Publication 503: Education. Expenses for a child in nursery school, pre-school, or similar programs for children below the level of kindergarten are expenses for care. Comment: It appears that the second from last bullet in the tutorial is more restrictive than the publication. Perhaps the last bullet is meant to describe meals and other services that are incidental to schooling. Furthermore, the sentence itself seems circular: Schooling below the first grade is not allowed unless it is incidental to the schooling?