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Required information Problem 8-71 (LO 8-4) (Static) (The following information applies to the questions displayed below.) Julie paid a day care center to watch her
Required information Problem 8-71 (LO 8-4) (Static) (The following information applies to the questions displayed below.) Julie paid a day care center to watch her two-year-old son while she worked as a computer programmer for a local start- up company. What amount of child and dependent care credit can Julie claim in 2021 in each of the following alternative scenarios? Use Exhibit 8-10 Problem 8-71 Part-a (Static) a. Julie paid $2,000 to the day care center and her AGI is $50,000 (all salary). Child and dependent care credit b. Julie paid $10,000 to the day care center and her AGI is $50,000 (all salary). Child and dependent care credit c. Julie paid $4,000 to the day care center and her AGI is $127,000 (all salary). Child and dependent care credit d. Julie paid $2,000 to the day care center and her AGI is $402,000 (all salary). Child and dependent care credit e. Julie paid $4,000 to the day care center and her AGI is $14,000 ($2,000 salary and $12,000 unearned income). Child and dependent care credit EXHIBIT 8-10 Child and Dependent Care Credit Percentage 48 21 If AGI is over But not over Then the percentage is $ 0 $125,000 50% 125,000 127,000 49 127,000 129,000 129,000 131,000 47 181,000 183,000 183,000 400,000 20 400,000 402,000 19 402,000 404,000 18 434,000 436,000 2 436,000 438,000 1 438,000 0 Source: Source: Internal Revenue Code. "$ 21. Expenses For Household And Dependent Care Services Necessary For Gainful Employment
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