Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Determine the maximum amount that can be deducted by both Mr. and Mrs. Byrd for the year ending December 31, 2019 for child care expenses.

image text in transcribedDetermine the maximum amount that can be deducted by both Mr. and Mrs. Byrd for the year ending December 31, 2019 for child care expenses. (Ontario, Canada)

Both Mr. Byrd and Mrs. Byrd are employed. During 2019, Mr. Byrd had opened a restaurant and had business income of $12000. Mr. Byrd also had net employment income of $52000, after deducting $10100 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 $9000 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 (11 years old), Gary (5 years old), and Pearson (2 years old). Payments for childcare uring the year amounted to $500 per week for 52 weeks of the year. Additionally, they sent Clarence and Ida 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 10 weeks during which Mr. Byrd was hospitalized due to injuries suffered during a hockey game. Both Mr. Byrd and Mrs. Byrd are employed. During 2019, Mr. Byrd had opened a restaurant and had business income of $12000. Mr. Byrd also had net employment income of $52000, after deducting $10100 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 $9000 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 (11 years old), Gary (5 years old), and Pearson (2 years old). Payments for childcare uring the year amounted to $500 per week for 52 weeks of the year. Additionally, they sent Clarence and Ida 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 10 weeks during which Mr. Byrd was hospitalized due to injuries suffered during a hockey game

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

Using Microsoft Excel And Access 20 For Accounting

Authors: Glenn Owen

5th Edition

133751229X, 9781337512299

More Books

Students also viewed these Accounting questions

Question

What are the major functions of the national office of the IRS?

Answered: 1 week ago