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? Use Exhibit 8-10
a. Julie paid $2,200 to the day care center and her AGI is $52,000 (all salary).
Child and dependent care credit?
c. Julie paid $5,000 to the day care center and her AGI is $125,900 (all salary).
Child and dependent care credit?
e. Julie paid $5,000 to the day care center and her AGI is $14,000 ($3,000 salary and $11,000 unearned income).
Child and dependent care credit?
EXHIBIT 8-10 Child and Dependent Care Credit Percentage If AGI is over But not over Then the percentage is $ 0 $125,000 50% 125,000 127,000 49 127,000 129,000 48 129,000 131,000 47 181,000 183,000 21 20 18 183,000 400,000 400,000 402,000 19 402,000 404,000 434,000 436,000 2 436,000 438,000 1 438,000 Source: Source: Internal Revenue Code. "S 21. Expenses For Household And Dependent Care Services Necessary For Gainful Employment." 0Step by Step Solution
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