Question
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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