9
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Question 9 • Financial Math

Lexi incurred $⁢2,000 in childcare expenses, spent $⁢1,200 on textbooks for a part-time graduate program, and paid $⁢3,000 in property taxes. Which expenses are eligible for tax credits?

Answer
A
textbooks and property taxes
B
textbooks only
C
property taxes and childcare expenses
D
childcare expenses and textbooks

Explanation

Childcare expenses may qualify for the Child and Dependent Care Credit, and required textbooks for a graduate program may qualify for an education credit such as the Lifetime Learning Credit. Property taxes generally do not qualify for a federal tax credit, though they may be deductible in some cases. Therefore, the eligible expenses are childcare expenses and textbooks.

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