Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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

image text in transcribed
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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Analysis for Financial Management

Authors: Robert c. Higgins

8th edition

73041807, 73041803, 978-0073041803

More Books

Students also viewed these Finance questions

Question

Is it eyewitness or hearsay evidence?

Answered: 1 week ago

Question

What is the point of the autllors' drunkdnvlng analogy?

Answered: 1 week ago