Question
Mrs. and Mr. Anders have three children who, at the end of the current year, are 4, 12, and 18 years of age. The 18
Mrs. and Mr. Anders have three children who, at the end of the current year, are 4, 12, and 18 years of age. The 18 year old child has a serious physical infirmity, but does not qualify for the disability tax credit. None of the children have any income.
Mrs. Anders had earned income of $18,000, while Mr. Anders had earned income of $69,000 (note: this is earned income for child care expense purposes). Assume the earned income also equals the net income for tax purposes.
The total payments for child care were $190 per week for a total of 50 weeks. The $190 per week is for all three children combined.
During the current year, Mrs. Anders spent six weeks in prison as the result of a conviction for possession of an illegal substance. Following her release, Mr. Anders spent three weeks in the hospital because of a stress related disorder.
Determine the maximum deduction for child care costs that Mrs. Anders and Mr. Anders may each claim separately. Show all calculations below your final answers.
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