Problem concerning child care expense


Question: Bob and Jane have one daughter, Autumn, who is 9 years old. In 2023, they paid a nanny $15,000 to look after Autumn while they were working. In 2023, Jane received a salary of $150,000 and Bob received a salary of $70,000. Bob and Jane had no other income in 2023. Which of the following statements is true? Question options: The maximum child care expense that Jane can claim is $15,000. The maximum child care expense that Jane can claim is $8,000. The maximum child care expense that Jane can claim is $5,000. Jane cannot claim child care expenses.

 

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Accounting Basics: Problem concerning child care expense
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