8.

Julie paid a day care center to watch her two-year-old son while she worked as a computer programmer for a local start-up company. What amount of child and dependent care credit can Julie claim in each of the following alternative scenarios? Exhibit 8-9

a. Julie paid $2,420 to the day care center and her AGI is $50,000 (all salary).

b. Julie paid $6,050 to the day care center and her AGI is $50,000 (all salary).

c. Julie paid $5,050 to the day care center and her AGI is $25,000 (all salary).

d. Julie paid $2,420 to the day care center and her AGI is $14,000 (all salary).

e. Julie paid $5,050 to the day care center and her AGI is $14,000 ($2,420 salary and $11,580 unearned income).