Federal Income Tax Individual Question

Problem 7-9 Child and Dependent Care Credit (LO 7.3) Calculate the amount of the child and dependent care credit allowed before any tax liability limitations or other credits for 2019 in each of the following cases, assuming the taxpayers had no income other than the stated amounts. TABLE 6.1 CHILD AND DEPENDENT CARE CREDIT PERCENTAGES Adjusted Gross Income Applicable Percentage Over But Not Over $0 35% $15,000 17,000 15,000 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% 29,000 28% 27,000 29,000 31,000 31,000 27% 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% a. William and Carla file a joint tax return. Carla earned $27,500 during the year, while William attended law school full-time for 9 months and earned no income. They paid $3,500 for the care of their 3-year-old child, Carl. $ b. Raymond and Michele file a joint tax return. Raymond earned $32,500 during the year, while Michele earned $9,000 for the year from a part-time job. They paid $7,000 for the care of their two children under age 13. $1 c. Beth is a single taxpayer who has two dependent children under age 5. Beth earned $25,500 in wages during the year and paid $6,700 for the care of her children