Question: * * * * * Scenario 3 : Self - Employed with Dependent Care Expenses Wages: None Qualified Business Income ( sole proprietorship ) :

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Scenario 3: Self-Employed with Dependent Care Expenses
Wages: None
Qualified Business Income (sole proprietorship): $68,000
Itemized Deductions: $15,000
Allowable deduction for self-employment tax: $5,500
Qualifying Children: 2(ages 3 and 1)
Childcare Expenses: $12,000
Calculate AGI and taxable income. Analyze their potential eligibility for the Child and Dependent Care Credit.

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