Tim and Martha paid $18,100 in qualified employment-related expenses for their three young children who live with them in their household. Martha received $2,900 of dependent care assistance from her employer, which was properly excluded from gross income. The couple had $156,600 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 $136,900 that was earned entirely by Martha?