8 The PATH Act made which of the following changes to the qu

8. The PATH Act made which of the following changes to the qualified educators deduction: a. The deduction was made permanent. b. Prof essional development expenses are included within the scope of the deduction. The $250 deduction amount was indexed to inflation. d. c. All of the above 9. The taxpa The care expenses for child was $2,800. What is the total amount of work-related child care expenses the taxpayer can use when figuring the child and dependent care credit? a. $2,800 b. $3.200 c. $5,800 d. $6,000 yer paid work-related expenses for the care of their two qualifying children one child was $3,200. The care expenses for the other

Solution

Under the PATH Act passed in 2015, educators of grade K-12 are allowed to deduct up to $250 of out-of-pocket expenses for classroom-related expenses and same was indexed to inflation. It was also extended permanently. Further to this “professional development expenses” were also included in the deduction. Hence, all of the above (option d) is correct.

As per the IRS rules, the dollar limit for child and development care credit is $3,000 for one qualifying child and $6,000 for two qualifying child. However, if the actual expenses are lesser than the dollar limit, you are allowed to claim the actual expense only. Hence, Option C is correct.