NA E 1 Question 3: Childcare Expense deduction (8 marks) 2 Austen and Chelsea are married and have two children. The following are the 3 amounts they incurred in childcare expenses during 2020. 4 5 Day-care (1 year old) $ 11,327 6 After school care (6 year old) $ 1,068 7 Summer camp (2 weeks, 6 year old) $ 1,048 8 Austen earns net business income of $26,000 and $2,200 in interest income. Chelsea works full-time as a hair stylist and has net employment income of $59,000. Austen's income would normally be higher; however, he was hospitalized for 6 weeks after a serious car accident. 9 Austen Chelsea 10 11 Child care expenses 12 1. Actual amounts 13 Day-care (1 year old) 14 After school care (6 year old) 15 Summer camp (2 weeks, 6 year old) 16 Total Actual Amount 17 2. 2/3 x earned income 8 Austen Chelsea 2 22 3. Annual limits 1 year old vear old 23 24 Q5 Now. 02 Q3 wyer Sheet Austen Chelsea 11 Child care expenses 12 1. Actual amounts 13 Day-care (1 year old) 14 After school care (6 year old) 15 Summer camp (2 weeks, 6 year old) 16 Total Actual Amount 17 2. 2/3 x earned income 18 Austen 19 Chelsea 20 21 3. Annual limits 22 1 year old 23 6 year old 24 25 4. Weekly limits 26 27 Austen Chelsea 28 29 30 31 Child Care Expense Deduction