The child and dependent care tax credit rule is the following: If AGI is below $15,000, 35% of the qualified expense will be refunded. The percentage falls by 1% for every additional $2,000 of income until it reaches 20% (for an AGI of $45,000 or more). Lily is a single parent with one child. She has $3,500 in childcare expenses. Her AGI is $25,000 per year, which makes her at the 12% tax bracket. Assume state income tax rate is 3%. Compute her tax savings under Child and Dependent Care Credit. Eligible expenses= Eligible tax credit rate= %. Total tax credit = $