Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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

image text in transcribedimage text in transcribedimage text in transcribed

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 credit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting For Managers Interpreting Accounting Information For Decision Making

Authors: Paul M. Collier

2nd Edition

0470016094, 9780470016091

More Books

Students also viewed these Accounting questions

Question

Present main arguments for and against the computer metaphor.

Answered: 1 week ago