Tim and Martha paid $19,600 in qualified employment-related expenses for their three young children who live with them in their household. Martha received $1,400 of dependent care assistance from her employer, which was properly excluded from gross income. The couple had $156,850 of AGI earned equally. Use Child and Dependent Care Credit AGI schedule.

Required:

1. What amount of child and dependent care credit can they claim on their Form 1040?
2. How would your answer differ (if at all) if the couple had AGI of $139,900 that was earned entirely by Martha?