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Problem 7-9 Child and Dependent Care Credit (LO 7.3) Calculate the amount of the child and dependent care credit allowed before any tax liability
Problem 7-9 Child and Dependent Care Credit (LO 7.3) Calculate the amount of the child and dependent care credit allowed before any tax liability limitations or other credits for 2022 in each of the following cases, assuming the taxpayers had no income other than the stated amounts. a. William and Carla file a joint tax return. Carla earned $27,500 during the year, while William attended law school full-time for nine months and earned no income. They paid $3,500 for the care of their 3-year-old child, Carl. Round your answer to the nearest whole dollar. 2,800 X Feedback Check My Work Taxpayers are allowed a credit for expenses for the care of their children and certain other dependents. To be eligible for the child and dependent care credit, the dependent must either be under the age of 19 or be a dependent or spouse of any age who is incapable of self- care. If a child's parents are divorced, the child need not be the dependent of the taxpayer claiming the credit, but the child must live with parent more than he or she lives with the other parent. The child and dependent care credit is equal to statutory percent of the qualified expenses that decreases as adjusted gross income increa In determining the credit, the maximum amount of qualified expenses, to which the applicable percentage is applied, is $8,000 for one
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