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Carmella is divorced and has two children, ages 3 and 9. For 2022, her adjusted gross income is $30,000, all of which is earned income.
Carmella is divorced and has two children, ages 3 and 9. For 2022, her adjusted gross income is $30,000, all of which is earned income. Carmellas younger child stays at her employers on-site child care center while she works. The benefits from this child care center qualify to be excluded from her income. Carmellas employer reports the value of this service as $3,000 for the year. This amount is shown in box 10 of Carmellas Form W-2, but is not included in taxable wages in box 1. A neighbor cares for Carmellas older child after school, on holidays, and during the summer. Carmella pays her neighbor $3,000 for this care. What is Carmellas Child and Dependent Care Credit for 2022
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