Question
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
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?
A. Julie paid $2,000 to the day care center and her AGI is $50,000 (all salary).
B. Julie paid $10,000 to the day care center and her AGI is $50,000 (all salary).
C. Julie paid $4,000 to the day care center and her AGI is $127,000 (all salary).
D. Julie paid $2,000 to the day care center and her AGI is $402,000 (all salary).
E. Julie paid $4,000 to the day care center and her AGI is $14,000 ($2,000 salary and $12,000 unearned income).
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