Fern and Fred Franklin file married joint. They have a 4-year-old daughter, Flower. They paid $10,000, to Kiddie Playschool to watch Flower while they worked. The Franklins did not receive advance payments of the Child Tax Credit. Use the 20% rate to calculate the child and dependent care credit.

2021 Information:

Salary Fern $70,000

Salary Fred $80,000

Long-term capital gain income $10,000

Sole proprietorship income $20,000

Contribution to Health Savings Account $2,000

State taxes paid $15,000

Medical expenses$10,000

Mortgage interest $20,000, the $400,000 mortgage was signed in 2014.

Contribution to the American Heart Association $5,000

Tax Payments:

Withholdings $10,000

Estimated- Quarterly Payments $5,000

Overpayment from 2020, $1,000