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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
EXHIBIT 8-10 Child and Dependent Care Credit Percentage 50% If AGI is over But not over Then the percentage is S 0 $125.000 125,000 127,000 49 127,000 129,000 48 129,000 131,000 47 181,000 183,000 21 183,000 400,000 20 400,000 402,000 19 402,000 404,000 18 434,000 436,000 2 436,000 438,000 1 438.000 0 Source: Source: Internal Revenue Code. "$ 21. Expenses For Household And Dependent Care Services Necessary For Gainful Employment." c. Julie paid $5,600 to the day care center and her AGI is $126,500 (all salary). Child and dependent care credit d. Julie paid $3,600 to the day care center and her AGI is $401,500 (all salary). Child and dependent care credit e. Julie paid $5,600 to the day care center and her AGI is $14,000 ($3,600 salary and $10,400 unearned income). Child and dependent care creditStep by Step Solution
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