Rudy and Louise are married and have two dependent children, one age 8 and the other age 12. Rudy and Louise are both employed: Rudy earns $5,000 and Louise earns $20,000. They had no other items of income or expense, so their AGI is $25,000. They pay Louises mother $$6,000 to care for the children while they are working. Note that Louises mother does not qualify as a dependent of Rudy and Louise.

What is the amount of expenses that are eligible when computing the Child and Dependent Care Credit?

How would your answer to part a change if the each earn $12,500?