Charlie and Samantha are resident aliens, married, and want to file a joint return. They have three children. Harry is 8 years old and a resident alien. Sherry is 3 years old and Maria is 1 year old and both are U.S. citizens. All three children lived with their parents in the United States all year. Charlie, Samantha, and Harry have Individual Taxpayer Identification Numbers (ITINs). Sherry and Maria have Social Security numbers. Charlie earned $38,000 in wages and Samantha earned $11,000 in wages. They had no other income. Charlie and Samantha provided all the support for their three children. Maria and Sherry attended daycare while Charlie and Samantha were at work. Charlie and Samantha did not receive benefits from a dependent care benefits plan or flexible spending account. The daycare center provided the Collins with a statement indicating the amount of $5,150 paid during 2019. The statement included the provider's name, address, Employer Identification Number, and phone number. 5. Which credit(s) are Charlie and Samantha eligible to claim? A. Credit for other dependents and earned income credit. B. Child tax credit and earned income credit. C. Child tax credit, child and dependent care credit, and credit for other dependents. D. They don’t qualify for any credits.

Respuesta :

Answer: The answer is C

Explanation:

This is a tax reduction given to low income earners in order to reduce their tax burden with a view to make life more comfortable for people whose income are low in the country. However, in order to qualify for the tax reduction, there are some requirements which are expected to be met by couples who wants to claim such tax credit as well as child and dependent care credit and credit for other dependents. These criteria includes the age of the children, the child must either be a biological child of the claimant or their adopted chilld. In addition, the couple's must either be a United States citizens or foreigners living in the United States. Like the case of the couple here they are resident alien, one of their children is also a resident alien ,while the other two are United States citizens .Also in order to qualify for the tax credit as well as child and dependent care credit they must meet the limit set for adjusted gross income for those who can enjoyed the tax reduction.