Question
Kaelyn's mother, Judy, looks after Kaelyn's four-year-old twins so Kaelyn can go to work (she drops off and picks up the twins from Judy's home
Kaelyn's mother, Judy, looks after Kaelyn's four-year-old twins so Kaelyn can go to work (she drops off and picks up the twins from Judy's home every day). Since Judy is a relative, Kaelyn made sure, for tax purposes, to pay her mother the going rate for child care ($16,300 for the year). What is the amount of Kaelyn's child and dependent care credit in 2021 if her AGI for the year was $130,000?
(Exhibit 8-10)
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 |
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Introduction To Health Care Management
Authors: Sharon B. Buchbinder, Nancy H. Shanks
3rd Edition
128408101X, 9781284081015
