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 each of the following alternative scenarios?
| a. | Julie paid $2,000 to the day care center and her AGI is $50,000 (all salary). |
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 |
| 183,000 | 400,000 | 20 |
| 400,000 | 402,000 | 19 |
| 402,000 | 404,000 | 18 |
| 434,000 | 436,000 | 2 |
| 436,000 | 438,000 | 1 |
| 438,000 | 0 |
Source: Source: Internal Revenue Code. " 21. Expenses For Household And Dependent Care Services Necessary For Gainful Employment."
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Financial Accounting An Introduction To Concepts Methods And Uses
Authors: Sidney Davidson, Roman L. Weil, Clyde P. Stickney
2nd Edition
0030452961, 978-0030452963
