Problem 9-46 (LO 9-1) Tim and Martha paid $6,400 in qualified employment-related expenses for their three young children who live with them in their household. Martha received $1,600 of dependent care assistance from her employer, which was properly excluded from gross income. The couple had $39,600 of AGI earned equally. Use Child and Dependent Care Credit AGI schedule. Required: a. What amount of child and dependent care credit can they claim on their Form 1040? b. How would your answer differ (if at all) if the couple had AGI of $37,500 that was earned entirely by Martha? Amounts a. Child and dependent care tax credit b. Child and dependent care tax credit Applicable Percentage 35% 34 33 32 31 30 29 Adjusted Gross Income $ 15,000 or less 15,00117,000 17,00119,000 19,00121,000 21,00123,000 23,00125,000 25,00127,000 27,00129,000 29,00131,000 31,00133,000 33,00135,000 35,00137,000 37,00139,000 39,00141,000 41,00143,000 43,001 or more 28 27 26 25 24 23 22 21 20