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can you help in solving this question based on chapter 9 - child care deductions Both Mr. Byrd and Mrs. Byrd are employed. During 2019,

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can you help in solving this question based on chapter 9 - child care deductions

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Both Mr. Byrd and Mrs. Byrd are employed. During 2019, Mr. Byrd had opened a restaurant and had business income of $11000. Mr. Byrd also had net employment income of $51000, after deducting $9500 of employment deductions. He also had $7,000 of interest income. Ms. Byrd had gross employment income of $84000, which Child care deduction calculation- Mrs. Byrd: Lesser of A or B included taxable benefits of $12,000. She also had $8000 of dividend income. Since they both had to work long Least of 3 things hours, they had to pay for care of their children. 1) Total eligible child care costs paid 2) Annual maximum child care expense amount They have four children: Clarence (15 years old and eligible for the disability tax credit), Ida (10 years old), Gary 3) 2/3 * (Earned income) (5 years old), and Pearson (2 years old). A Least of 1, 2, or 3 B: Periodic amount . number of weeks lower income spouse was hospitalized Payments for childcare during the year amounted to $525 per week for 52 weeks of the year. Additionally, they sent Clarence and Ida to overnight summer camp for 4 weeks each, and paid $5000 total for this camp. Mrs. Byrd's child care deduction: lesser of A or B: Also during the current year, there was a period of 9 weeks during which Mr. Byrd was hospitalized due to Child care deduction calculation- Mr. Byrd: injuries suffered during a hockey game. Deduction= Least of 3 things 1) Total eligible child care costs paid Required: Determine the maximum amount that can be deducted by Mr. and Mrs. Byrd for the year ending 2) Annual maximum child care expense amount December 31, 2019 for child care expenses. Final answers to each step should be filled in the yellow boxes on 3) 2/3 * (Earned income) the "P1-Response" tab. Show any extra work or notes in the green space provided on the "P1-Response" tab. Least of 1, 2, or 3 Less Mrs. Byrd's deduction Mr. Byrd- deduction

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