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Topic 14 - Child and Dependent Care Credit

Student instructions: 

You may need acrobat reader to download forms and publications online.

Use  IRS Publication 503 and California 540A / 540 Booklet to complete this topic.

Complete a tax return for Lawrence Escobedo (570-16-1970) and Theresa Escobedo (502-39-4055). They got married December 31, 2007.

Their Children who lived with them all year are:
bullet Mario Escobedo (SSN 603-19-2036) date of birth February 18, 2000.
bullet Cindy Escobedo (SSN 603-18-2053) date of birth April 10, 1999.

Only Lawrence worked. Theresa did not work. Theresa attended school full time for 7 months in 2007. The school was not an on-the-job training course, correspondence school, night, or internet school. When she was in school they were taken care of by Happy Child, inc.:
bullet They paid Happy Child, Inc. $2,500 for each child for a total of $5,000. 
bullet The child care provider address is in state part.
bullet Happy Child, Inc., provider EIN 95-0906670.
bulletCare provided at: 2005 W 6th Street, Los Angeles, CA  90020.

Also figure the Child tax credit and enter on Form 1040A line 32.

In addition to their earnings, they had the following:

bulletBank interest income                 $65.00
bulletUnemployment Compensation     $450.00

Complete the  Form 1040A, Schedule 2 (also a Schedule EIC), California Form 540A and Form FTB 3506. Use the following attached W2. All information on W2 is current.

 Have your return prepared and ready to answer the questions. Choose one of the following two options:

Option 1: Complete Quiz online.

Instructions to submit quiz successfully: Step-by-Step check list

When prompted for your name, please enter your CTEC or Preparer Number (if you have a number) with your name as follows:  First, last name, Number (e.g. John Smith A012345 / John Smith P012345)

Print questions

Start quiz

Option 2: Complete and mail answer sheet.

If you choose not to complete the quiz by pressing "Start quiz" above, you can print questions and answer-sheet to mail to us. If you complete the online quiz, the advantage is that you get an automatic score as apposed to waiting for a response on a manually graded quiz. You can also print the questions and answer sheet and after you answered the questions on paper submit it online by choosing "Start Quiz" above.  Please don't sent answer sheet by certified mail.

Print questions         Print Answer sheet

Please Note: You must also complete the tax return for this assignment. If you turn in incomplete work, such as purposely not answering the questions regarding the return you prepared, you will not be given credit for the topic.

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Revised: 11/17/14