LO.4 Jim and Mary Jean are married and have two dependent children under the age of 13.

Both parents are gainfully employed and during 2012 earn salaries as follows:

$16,000 (Jim) and $5,200 (Mary Jean). To care for their children while they work, they pay Eleanor (Jim’s mother) $5,600. Eleanor does not qualify as a dependent of Jim and Mary. Assuming that Jim and Mary Jean file a joint tax return, what, if any, is their credit for child and dependent care expenses?