Mr. and Mrs. OP have two dependent children. They paid $7,200 wages to a housekeeper to care for the children and $549 employer payroll tax on her wages. Mr. and Mrs. OP file a joint return. In each of the following cases, compute their dependent care credit:
a. One child is age 10, and the other is age 15. Mr. OP’s earned income is $75,000, and Mrs. OP has no earned income. Their AGI is $81,300.
b. One child is age 2, and the other is age 6. Mr. OP’s earned income is $45,000, and Mrs. OP’s earned income is $28,000. Their AGI is $81,300.