Child, Dependent, and Adoption Credits
Learn the decision pattern the exam can test, then apply it to a realistic taxpayer fact pattern.
What changes the answer?
A child who qualifies a taxpayer for one benefit may fail the age, identification, or expense test for another.
A tax-practice scenario
A family pays day care for one child and adoption costs for another. Apply each credit's own person and expense tests.
Identify the taxpayer, entity, transaction, and tax period first. Write the controlling tests in order, apply only the relevant facts, and keep the reporting result separate from any planning recommendation.
Do not take this shortcut.
Reusing the dependency conclusion as the full eligibility analysis for every family credit.
Turn the rule into recall.
Keep separate checklists for the child tax, dependent care, and adoption credits, then reconcile shared facts.
- ExplainState the governing distinction without notes.
- ApplyChange one fact in the scenario and predict the new result.
- RetrieveAnswer an unseen question, then review every option.
Official source and scope
This lesson follows the current PSI content outline and uses the IRS reference below for the underlying tax or practice framework. Always confirm current forms, instructions, thresholds, and effective dates before advising a taxpayer.