Your supervisor has asked you to research the following situation concerning Mark and Lucy Canon.Mark and Lucy are married and file a joint return.Mark works full-time as a project manager, and Lucy is a full-time student (online bachelor program), and she paid $12,000 in tuition (i.e. 100% student loans).Mark's wages for the year is $36,000. Lucy does not have a job.Additionally, Mark and Lucy have one child, Mark Jr. (age 7), and they pay $3,000 for child care expenses during the year.

Mark and Lucy are coming tomorrow, and they want to know if they are eligible for tax credits to increase their refund.They have three tax credits in mind ( i.e. child and dependent care credit, education credit and earned income credit).

Sources:Textbook &Publication 503(Links to an external site.)

&Publication 970(Links to an external site.)

&Publication 596(Links to an external site.)

Required: Review Mark and Lucy's situation, do some research and write notes to the file to discuss with Mark and Lucy tomorrow.Since they do not understand taxes, please offer any other tax credits, if any, that they might have missed.Mark and Lucy want to know about the following tax credits:(1)child and dependent care credit,(2)Education Credit and(3)Earned Income Credit.Can they claim all or some of those tax credits? The notes should address the main questions asked by the client, but it should also includes other areas of interest.

The notes must have the following set-up:

• The Facts:
• The Issue/s:
• Conclusion/s:
• Other