$*****$

Scenario $3$: Self$-$Employed with Dependent Care Expenses

Wages: None

Qualified Business Income $($sole proprietorship$)$: $$68,000$

Itemized Deductions: $$15,000$

Allowable deduction for self$-$employment tax: $$5,500$

Qualifying Children: $2($ages $3$ and $1)$

Childcare Expenses: $$12,000$

Calculate AGI and taxable income. Analyze their potential eligibility for the Child and Dependent Care Credit.