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please answer all parts Avd and vier nusbano, Leo, file a joint return and are in the 2496 tax bracket in 2022. Ava's employer offers
please answer all parts
Avd and vier nusbano, Leo, file a joint return and are in the 2496 tax bracket in 2022. Ava's employer offers a child and dependent care reimbursement plan that allows up to $5,100 of qualifying expenses to be reimbursed in exchange for a $5,100 reduction in the employee's Salary (Ava's salary is $79,500 ). Because Ava and teo have two minor children requiring child care that costs $5,610 each year, Ava is wondering if she should sign up for the program instead of taking advantage of the credit for chid and dependent care expenses. Analyze the effect of the two alternatives. Assume a FICA tax rate of 7.65%, Do not round intermediate computations. If required, round your final answers to the nearest dollar. Click to view Percentage Credit based on Adjusted Gross Income. a. If Ava and Leo take advantage of the plan, they. expenses is gross income. The save income taxes because the reimbursement of child care In addition, Ava will save $ of fica taxes due to the reduction in salary. Aternatively, if Ava does not take advantoge of the plan, their child and dependent care tax credit will bes and Leo's income taxes will be 4 if they do not participate in the plan. Therefore Ava b. Assume, instead, that Ava's salary was $30,000 and Avo and teo's AG1 is $25,000 and they are in the 1094 tax bracket. the assocated with participating in the plan would bes In addition, Ava will save of FICA takes due to the reduction in safary. Alternatively, if Ava does not tak a and leg's nocome taxses will bes is they do not participate in the plan Step by Step Solution
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