How much of the child care expenses can be used

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Q1. Some clients choose to receive their refund through an electronic refund check (ERC) so they can have the tax preparation fees come out of their refund. Which of the following statements is correct about ERCs?

a) The ERC is not a loan, and the process takes approximately 2-3 weeks.

b) The ERC is not a loan, and the process takes approximately 4-6 weeks.

c) The ERC is a loan, and the process takes approximately 24 hours.

d) The ERC is a loan, and the process takes approximately 2-3 weeks.

Q2. Aria and Logan Johnson have two children, Sophia, age 2, and Mia, age 4. Logan is an engineer and Aria is a housemaker. The Johnsons paid $8,000 for Mia to attend daycare during the year. Logan received dependent care benefits from his employer of $2,000. Their AGI is $65,000, and their tax liability is $2,006. How much of the child care expenses can be used to claim the dependent care credit?

a) $6,800

b) $1,000

c) $5,000

d) $0

Reference no: EM132509878

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