3
QuizMultiple Choice

Taxes — Test

Question 3 • Financial Math

Janae paid $⁢4,000 in tuition for college, $⁢1,500 in interest on a student loan, and $⁢2,000 for childcare expenses. Which expenses are eligible for tax credits?

Answer
A
student loan interest and childcare expenses
B
tuition and student loan interest
C
childcare expenses only
D
tuition and childcare expenses

Explanation

Tuition may qualify for an education tax credit, and childcare expenses may qualify for a child and dependent care tax credit if the other requirements are met. Student loan interest is generally claimed as a deduction, not a tax credit. Therefore, tuition and childcare expenses are the eligible expenses listed in choice D.

AI-written and checked against the verified answer.

Previous
Next