Gary and Diane Hall, husband and wife, filed a joint return in 2020. Their combined AGI was $52,000 (Gary earned $22,000 and Diane earned $30,000). The Halls paid $3,500 to Union Day Care Center to care for for their four-year-old son, John, while they were at work. What is the amount of dependent care tax credit they should report on their tax return for 2020?

Select one:

a. $600

b. $1,050

c. $500

d. $700