Child and Dependent Care Credit (LO 7.3)

Clarita is a single taxpayer with two dependent children, ages 10 and 12. Clarita pays $3,000 in qualified child care expenses during the year.

TABLE 6.1

CHILD AND DEPENDENT CARE CREDIT PERCENTAGES

Adjusted Gross Income				Applicable Percentage
Over		But Not Over
$0		$15,000		35%
15,000		17,000		34%
17,000		19,000		33%
19,000		21,000		32%
21,000		23,000		31%
23,000		25,000		30%
25,000		27,000		29%
27,000		29,000		28%
29,000		31,000		27%
31,000		33,000		26%
33,000		35,000		25%
35,000		37,000		24%
37,000		39,000		23%
39,000		41,000		22%
41,000		43,000		21%
43,000		No limit		20%

If her adjusted gross income (all from wages) for the year is $19,600 and she takes the standard deduction, calculate Claritas earned income credit and child and dependent care credit for 2019. Note: Assume the taxpayer is in the 10% tax bracket.

Click here to view the Earned Income Credit table. Child and dependent care credit$fill in the blank 1

Earned income credit$fill in the blank 2

Please Explain With Step By Step: