Tim and Martha paid $17,900 in qualified employment-related expenses for their three young children who live with

Question:

Tim and Martha paid $17,900 in qualified employment-related expenses for their three young children who live with them in their household. Martha received $1,800 of dependent care assistance from her employer, which was properly excluded from gross income. The couple had $156,500 of AGI earned equally. 



Required:


a. What amount of child and dependent care tax credit can they claim on their Form 1040? 


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b. How would your answer differ (if at all) if the couple had AGI of $136,500 that was earned entirely by Martha?

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Related Book For  book-img-for-question

Fundamentals Of Taxation 2022

ISBN: 9781264209408

15th

Authors: Ana Cruz, Michael Deschamps, Frederick Niswander

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