Adrienne is a single mother with a six-year-old daughter who lived with her during the entire year. Adrier expenses so that she would be able to work. Of this amount, $660 was paid to Adrienne's mother, whon
Adrienne is a single mother with a six-year-old daughter who lived with her during the entire year. Adrier expenses so that she would be able to work. Of this amount, $660 was paid to Adrienne's mother, whon
Chapter7: Tax Credits
Section: Chapter Questions
Problem 4MCQ
Related questions
Question
![Adrienne is a single mother with a six-year-old daughter who lived with her during the entire year. Adrienne paid $2,350 in child care
expenses so that she would be able to work. Of this amount, $660 was paid to Adrienne's mother, whom Adrienne cannot claim as a
dependent. Adrienne had net earnings of $1,700 from her jewelry business. In addition, she received child support payments of
$20,700 from her ex-husband. Use Child and Dependent Care Credit AGI schedule.
Required:
What amount, if any, of child and dependent care credit can Adrienne claim?
Child and dependent care tax credit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2b0e3847-a2db-4033-b253-cf3d369d09bd%2F67e7a8b2-281a-40c5-8a30-b2dbe98eb0bd%2Fz2f119a_processed.png&w=3840&q=75)
Transcribed Image Text:Adrienne is a single mother with a six-year-old daughter who lived with her during the entire year. Adrienne paid $2,350 in child care
expenses so that she would be able to work. Of this amount, $660 was paid to Adrienne's mother, whom Adrienne cannot claim as a
dependent. Adrienne had net earnings of $1,700 from her jewelry business. In addition, she received child support payments of
$20,700 from her ex-husband. Use Child and Dependent Care Credit AGI schedule.
Required:
What amount, if any, of child and dependent care credit can Adrienne claim?
Child and dependent care tax credit
![Tim and Martha paid $9,600 in qualified employment-related expenses for their three young children who live with them in their
household. Martha received $1,400 of dependent care assistance from her employer, which was properly excluded from gross income.
The couple had $57,350 of AGI earned equally. Use Child and Dependent Care Credit AGI schedule.
Required:
a. What amount of child and dependent care credit can they claim on their Form 1040?
b. How would your answer differ (if at all) if the couple had AGI of $39,900 that was earned entirely by Martha?
a. Child and dependent care tax credit
b. Child and dependent care tax credit
Amounts](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2b0e3847-a2db-4033-b253-cf3d369d09bd%2F67e7a8b2-281a-40c5-8a30-b2dbe98eb0bd%2Fx759elw_processed.png&w=3840&q=75)
Transcribed Image Text:Tim and Martha paid $9,600 in qualified employment-related expenses for their three young children who live with them in their
household. Martha received $1,400 of dependent care assistance from her employer, which was properly excluded from gross income.
The couple had $57,350 of AGI earned equally. Use Child and Dependent Care Credit AGI schedule.
Required:
a. What amount of child and dependent care credit can they claim on their Form 1040?
b. How would your answer differ (if at all) if the couple had AGI of $39,900 that was earned entirely by Martha?
a. Child and dependent care tax credit
b. Child and dependent care tax credit
Amounts
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