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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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