Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Both Mr . Byrd and Mrs . Byrd are employed. During 2 0 2 3 , Mr . Byrd had opened a restaurant and had

Both Mr. Byrd and Mrs. Byrd are employed. During 2023, Mr. Byrd had opened a restaurant and had business income of $6500. Mr. Byrd also had net employment income of $51300, after deducting $9650 of employment deductions. He also had $7,000 of interest income. Ms. Byrd had gross employment income of $87000, which included taxable benefits of $12,000. She also had $9200 of dividend income. Since they both had to work long hours, they had to pay for care of their children.
They have four children: Clarence (15 years old and eligible for the disability tax credit), Ida (10 years old), Gary (9 years old), and Pearson (2 years old).
Payments for childcare during the year amounted to $600 per week for 52 weeks of the year. Additionally, they sent Clarence, Ida, and Gary to overnight summer camp for 2 weeks each, and paid $5000 total for this camp.
Also during the current year, there was a period of 12 weeks during which Mr. Byrd was hospitalized due to injuries 9 suffered during a hockey game.
0
1 Required: Determine the maximum amount that can be deducted by Mr. and Mrs. Byrd for the year ending December 231,2023 for child care expenses. Final answers to each step should be filled in the yellow boxes on the "P1- Response" 3 tab. Show any extra work or notes in the green space provided on the "P1-Response" tab.
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Cost Accounting

Authors: William Lanen, Shannon Anderson, Michael Maher

5th edition

978-1259728877, 1259728870, 978-1259565403

Students also viewed these Accounting questions