Steve and Cathy are preparing their income tax returns. Johnny is two years old and their...

 

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Steve and Cathy are preparing their income tax returns. Johnny is two years old and their only child and they have hired Steve's sister Samantha (22 years old) to look after Johnny. They pay her $125 per week for 48 weeks. In addition, Cathy's parents agreed to look after Johnny for a couple of nights. The fair market value of this service was $100, but since they wanted to spend some time with their grandson, they never charged a penny. Steve ran into trouble with the law and was sentenced to prison for 6 weeks during 2017. Details of Income during the 2017 Year: Cathy Steve +T Gross Employment Taxable Employment Benefits - Employment Expenses Net Employment Income $59,300 $35,000 Gross Business Income - Business Expenses Net Business Income -$5,900 $2,200 Taxable Capital Gain $1,300 $1,400 Net Income $54,700 $38,600 Determine the maximum childcare expenses allowed for Steve and Cathy. Use the Child Care Form 1778, as needed to complete your answer. REQUIRED: $59,000 $2,000 -$1,700 $10,000 -$15,900 $34,000 $1,500 -$500 $15,400 -$13,200 Steve and Cathy are preparing their income tax returns. Johnny is two years old and their only child and they have hired Steve's sister Samantha (22 years old) to look after Johnny. They pay her $125 per week for 48 weeks. In addition, Cathy's parents agreed to look after Johnny for a couple of nights. The fair market value of this service was $100, but since they wanted to spend some time with their grandson, they never charged a penny. Steve ran into trouble with the law and was sentenced to prison for 6 weeks during 2017. Details of Income during the 2017 Year: Cathy Steve +T Gross Employment Taxable Employment Benefits - Employment Expenses Net Employment Income $59,300 $35,000 Gross Business Income - Business Expenses Net Business Income -$5,900 $2,200 Taxable Capital Gain $1,300 $1,400 Net Income $54,700 $38,600 Determine the maximum childcare expenses allowed for Steve and Cathy. Use the Child Care Form 1778, as needed to complete your answer. REQUIRED: $59,000 $2,000 -$1,700 $10,000 -$15,900 $34,000 $1,500 -$500 $15,400 -$13,200

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