Question
Anna 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
Anna 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 2021 in each of the following alternative scenarios?
1. Anna paid $5,000 to the day care center and her AGI is $125,900 (all salary).
2. Anna paid $3,000 to the day care center and her AGI is $400,900 (all salary).
3. Anna paid $5,000 to the day care center and her AGI is $14,000 ($3,000 salary and $11,000 unearned income).
| If AGI is over | But not over | Then the percentage is |
|---|---|---|
| $ 0 | $125,000 | 50% |
| 125,000 | 127,000 | 49 |
| 127,000 | 129,000 | 48 |
| 129,000 | 131,000 | 47 |
| 181,000 | 183,000 | 21 |
| 183,000 | 400,000 | 20 |
| 400,000 | 402,000 | 19 |
| 402,000 | 404,000 | 18 |
| 434,000 | 436,000 | 2 |
| 436,000 | 438,000 | 1 |
| 438,000 | 0 |
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Investing In People Financial Impact Of Human Resource Initiatives
Authors: John W. Boudreau, Wayne F. Cascio, Alexis A. Fink
3rd Edition
1586446096, 978-1586446093
