Mr. and Mrs. Alexander have two dependent children. They paid $7,200 wages to a housekeeper to care

Question:

Mr. and Mrs. Alexander 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. Alexander 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. Alexander's earned income is $75,000, and Mrs. Alexander has no earned income. Their AGI is $81,300.

b. One child is age 2, and the other is age 6. Mr. Alexander's earned income is $45,000, and Mrs. Alexander's earned income is $28,000. Their AGI is $81,300.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Principles Of Taxation For Business And Investment Planning 2019 Edition

ISBN: 9781260161472

22nd Edition

Authors: Sally Jones, Shelley C. Rhoades Catanach, Sandra R Callaghan

Question Posted: