Question

applicable credits
first, martin needs to figure out which
credits might apply to his family’s situation.
select all the credits that martin’s family may be able to claim.
□ a credit to help pay for daycare.
□ a credit for working adults supporting or not
supporting children.
□ a credit for adopting a child in the past year.
□ a credit for simply having a child in the family.

Explanation:

• Daycare credit: If Martin’s family has a child in daycare (to enable parents to work), the Child and Dependent Care Credit applies.
• Working adults credit: The Earned Income Tax Credit (EITC) is for working adults, with or without children, based on income.
• Adoption credit: If they adopted a child recently, the Adoption Credit can be claimed for qualified adoption expenses.
• Having a child credit: The Child Tax Credit is for families with qualifying children, just for having a child (meeting income/relationship/residency tests).

Answer:

A. A credit to help pay for daycare, B. A credit for working adults supporting or not supporting children, C. A credit for adopting a child in the past year, D. A credit for simply having a child in the family (assuming Martin’s family has a child, uses daycare, has working adults, or adopted a child; all these are common tax credits related to family/child - related situations like Child and Dependent Care Credit, Earned Income Tax Credit, Adoption Credit, and Child Tax Credit respectively).