U.S Tax law with 2019 revisions:

Problem 7-9 Child and Dependent Care Credit (LO 7.3)

Calculate the amount of the child and dependent care credit allowed before any tax liability limitations or other credits for 2019 in each of the following cases, assuming the taxpayers had no income other than the stated amounts.

TABLE 6.1

CHILD AND DEPENDENT CARE CREDIT PERCENTAGES

Adjusted Gross Income				Applicable Percentage
Over		But Not Over
$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%

a. William and Carla file a joint tax return. Carla earned $27,500 during the year, while William attended law school full-time for 9 months and earned no income. They paid $3,500 for the care of their 3-year-old child, Carl. $fill in the blank 3f65b607aff306c_1

b. Raymond and Michele file a joint tax return. Raymond earned $32,500 during the year, while Michele earned $9,000 for the year from a part-time job. They paid $7,000 for the care of their two children under age 13. $fill in the blank c0007dfa8063ffa_1

c. Beth is a single taxpayer who has two dependent children under age 5. Beth earned $25,500 in wages during the year and paid $6,700 for the care of her children. $fill in the blank 99824d057fbbf8f_1