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 $2,420 to the day care center and her AGI is $50,200 (all salary).
b. Julie paid $6,050 to the day care center and her AGI is $50,200 (all salary).
c. Julie paid $6,100 to the day care center and her AGI is $127,000 (all salary).
d. Julie paid $4,100 to the day care center and her AGI is $402,000 (all salary).
e. Julie paid $6,100 to the day care center and her AGI is $14,000 ($4,100 salary and $9,900 unearned income).
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