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ulie paid a day care center to watch her two-year-old son while she worked as a computer programmer for a local start-up company. What amount

ulie paid a day care center to watch her two-year-old son while she worked as a computer programmer for a local start-up company.

What amount of child and dependent care credit can Julie claim in 2022 in each of the following alternative scenarios? Use Exhibit 8-10

Required:

a. Julie paid $2,460 to the day care center, and her AGI is $50,600 (all salary).

b. Julie paid $6,150 to the day care center, and her AGI is $50,600 (all salary).

c. Julie paid $6,300 to the day care center, and her AGI is $24,500 (all salary).

d. Julie paid $2,100 to the day care center, and her AGI is $14,000 (all salary).

e. Julie paid $6,300 to the day care center, and her AGI is $14,000 ($4,300 salary and $9,700 unearned income).

EXHIBIT 8-10 Child and Dependent Care Credit Percentage

If AGI is over But not over Then the percentage is
$ 0 $15,000 35%
15,000 17,000 34
17,000 19,000 33
19,000 21,000 32
21,000 23,000 31
23,000 25,000 30
25,000 27,000 29
27,000 29,000 28
29,000 31,000 27
31,000 33,000 26
33,000 35,000 25
35,000 37,000 24
37,000 39,000 23
39,000 41,000 22
41,000 43,000 21
43,000 No limit 20

Source: 21.

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