Remember that the SALT deduction is limited to $$10,000.$ Unless stated otherwise in the specific question,

assume that the following situations apply to these $4$ individuals:

Pam: Single, part$-$time receptionist and struggling artist. Has AGI of $$20,000.$ She rents and thus has little in

itemized deductions.

Jim: Single, salesperson of office supplies. Has AGI of $$60,000.$ Pays $$5000$ a year in state and local taxes

$($SALT$)$ and $$6000$ a year in mortgage interest. Has no other deductions.

Ian: Assistant creative director at gaming company. Has AGI of $$200,000.$ Rents and pays $$12,000$ in SALT.

Has no other deductions.

Poppy: Computer programming whiz at gaming company. Has AGI of $$300,000.$ Pays $$20,000$ a year in SALT

and $$80,000$ in interest on her two homes. No other deductions.

Suppose that Pam and Ian each have a dependent child $($not together!$).$ They each incur $$5,000$ a year in child

care expenses and so want to take advantage of the nonrefundable child care tax credit of $$3,000.$ For simplicity,

you can ignore the fact that they would now be a $$head of household$$ and would therefore face a different

standard deduction. I want you to focus solely on the effect of the tax credit.