What must dependent care expenses be associated with to qualify for tax deductions?

What must dependent care expenses be associated with to qualify for tax deductions?

• A. Care for children under 16
• B. Care for children or dependent adults
• C. Health insurance premiums
• D. Home maintenance costs

Answer: (B)

Dependent care expenses must be associated with care for children or dependent adults to qualify for tax deductions. This is because the tax code specifically recognizes the costs incurred for the care of a qualifying child under 13 years old, as well as for dependents who are physically or mentally incapable of self-care, regardless of their age. The deduction is designed to assist taxpayers who are working or actively seeking employment and need reliable care arrangements for their dependents while they are away. Care specifically for children under 16 is too narrow, as it excludes adult dependents who may also need care. Health insurance premiums and home maintenance costs do not fall under dependent care expenses; they relate to health coverage and property upkeep respectively, which are treated differently in tax law. Hence, the broader understanding that encompasses care for both children and dependent adults aligns correctly with the criteria for these deductions.

Dependent care expenses must be associated with care for children or dependent adults to qualify for tax deductions. This is because the tax code specifically recognizes the costs incurred for the care of a qualifying child under 13 years old, as well as for dependents who are physically or mentally incapable of self-care, regardless of their age. The deduction is designed to assist taxpayers who are working or actively seeking employment and need reliable care arrangements for their dependents while they are away.

Care specifically for children under 16 is too narrow, as it excludes adult dependents who may also need care. Health insurance premiums and home maintenance costs do not fall under dependent care expenses; they relate to health coverage and property upkeep respectively, which are treated differently in tax law. Hence, the broader understanding that encompasses care for both children and dependent adults aligns correctly with the criteria for these deductions.