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Problem 7-11 Child and Dependent Care Credit (LO 7.2, 7.3) Clarita is a single taxpayer that lives in the U.S. with two dependent children,
Problem 7-11 Child and Dependent Care Credit (LO 7.2, 7.3) Clarita is a single taxpayer that lives in the U.S. with two dependent children, ages 10 and 12. Clarita pays $3,000 in qualified child care expenses during the year. CHILD AND DEPENDENT CARE CREDIT PERCENTAGES TABLE 6.1 Adjusted Gross Income Applicable Percentage Over But Not Over $0 $15,000 35% 15,000 17,000 34% 17,000 19,000 33% 19,000 21,000 32% 21,000 - 23,000 31% 23,000 25,000 30% 25,000 - 27,000 29% 27,000 29,000 28% 29,000 - 31,000 27% 31,000 33,000 26% 33,000 - 35,000 25% 35,000 37,000 24% 37,000 39,000 23% 39,000 41,000 22% 41,000 43,000 21% 43,000 No limit 20% If her adjusted gross income (all from wages) for the year is $70,000 and she takes the standard deduction, calculate Clarita's child tax credit, earned income credit, and child and dependent care credit for 2022. Click here to view the Earned Income Credit table. Click here to access the tax table for this problem. Clarita's taxable income is $ 57,450 X with a tax liability (pre- credit) of $5,779 x. Her credits are computed below: Child Tax Credit 4,000 Child and dependent care credit 600 Earned income credit 0 The total refundable credits equal 4,600
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