Question
Jerry and Ann Jones are married and keep up a home for their two preschool children, ages 2 and 4. They claim their children as
Jerry and Ann Jones are married and keep up a home for their two preschool children, ages 2 and 4. They claim their children as dependents and file a joint return using Form 1040. Their adjusted gross income (AGI) is $229,000. Jerry earned $104,000, and Ann earned $125,000. During the year, they pay work-related expenses of $8,000 for child care for their son, Daniel, at a neighbor's home and $8,200 for child care for their daughter, Amy, at Pine Street Nursery School. How much of their child-care payments are eligible for the Child and Dependent Care Credit on their return?
A. Zero
B. $8,000
C. $16,200
D. $16,000
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