Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Exhibit 8-10 ! Required Information [The following information applies to the questions displayed below.] Julie paid a day care center to watch her two-year-old son
Exhibit 8-10
! Required Information [The following information applies to the questions displayed below.] Julie paid a day care center to watch her two-year-old son while she worked as a computer programmer for a local start-up company. What amount of child and dependent care credit can Julie claim in 2021 in each of the following alternative scenarios? Use Exhibit 8-10 a. Julie paid $2,160 to the day care center and her AGI is $51.600 (all salary). Child and dependent care credit b. Julie paid $5.400 to the day care center and her AGI is $51,600 (all salary). Child and dependent care credit c. Julie paid $4.800 to the day care center and her AGI is $125,700 (all salary). Child and dependent care credit d. Julie paid $2,800 to the day care center and her AGI is $400,700 (all salary). Child and dependent care credit e. Julie paid $4,800 to the day care center and her AGI is $14.000 ($2,800 salary and $11.200 unearned income). Child and dependent care credit EXHIBIT 8-10 Child and Dependent Care Credit Percentage If AGI is over But not over Then the percentage is S 0 $125,000 50% 125.000 127,000 49 127,000 129,000 48 129.000 131,000 47 181,000 183,000 21 183.000 400,000 20 400,000 402.000 19 402.000 404,000 18 434,000 436,000 2 436,000 438.000 1 438,000 0 Source: Source: Internal Revenue Code. "$ 21. Expenses For Household And Dependent Care Services Necessary For Gainful EmploymentStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started