Jack paid $5,000 in daycare expenses in 2022 for his five-year-old daughter so he could work. His AGI for the year was $37,500 (all earned income). What is the amount of his child and dependent care credit?

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter8: Taxation Of Individuals
Section: Chapter Questions
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  1. Jack paid $5,000 in daycare expenses in 2022 for his five-year-old daughter so he could work. His AGI for the year was $37,500 (all earned income). What is the amount of his child and dependent care credit?  
  2. Jack meets the love of his life, Jill, and they quickly marry. Jill’s earned income mirrors Jack’s at $37,500, so in 2022, Jack quits working and stays home to play video games. If Jack and Jill are MFJ with AGI of $37,500 in 2022, and Jack’s daughter continues to incur $5,000 in dependent care expenses, how much will their dependent care credit be? Show your work, or explain your answer.
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