Julie paid a day care center to watch her two-year-old son while she worked as a computer
Question:
Julie 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 each of the following alternative scenarios?
a) Julie paid $2,000 to the day care center and her AGI is $50,000 (all salary).
b) Julie paid $5,000 to the day care center and her AGI is $50,000 (all salary).
c) Julie paid $4,000 to the day care center and her AGI is $25,000 (all salary).
d) Julie paid $2,000 to the day care center and her AGI is $14,000 (all salary).
e) Julie paid $4,000 to the day care center and her AGI is $14,000 ($2,000 salary and $12,000 unearned income).
Step by Step Answer:
McGraw-Hill's Taxation Of Individuals
ISBN: 9781259729027
2017 Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver