Your supervisor has asked you to research the following situation concerning Scott and Heather Moore. Scott and Heather are married and file a joint return. Scott works fulltime as a wildlife biologist, and Heather is a full-time student enrolled at Online University. Scott’s earned income for the year is $36,000. Heather does not have a job and con centrates solely on her schoolwork. The university she is enrolled in offers courses only through the Internet. Scott and Heather have one child, Elizabeth (age 8), and pay $3,000 for child care expenses during the year.

Required:
Go to the IRS website (www.irs.gov). Locate and review Publication 503. Write a file memorandum stating the amount of child and dependent care credit that Scott and Heather Moore can claim. (An example of a file memorandum is available at the website for this text located at www.cengagebrain.com.)