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? Exhibit 8-9
a. Julie paid $2,400 to the day care center and her AGI is $50,000 (all salary).
b. Julie paid $6,000 to the day care center and her AGI is $50,000 (all salary).
c. Julie paid $5,000 to the day care center and her AGI is $25,000 (all salary).
d. Julie paid $2,400 to the day care center and her AGI is $14,000 (all salary).
e. Julie paid $5,000 to the day care center and her AGI is $14,000 ($2,400 salary and $11,600 unearned income).
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