Marty and Jean are married and have 4-year-old twins. Jean is going to school full-time for 9 months of the year, and Marty earns $44,500. The twins are in day care so Jean can go to school while Marty is at work. The cost of day care is $9,100. TABLE 6.1 CHILD AND DEPENDENT CARE CREDIT PERCENTAGES Adjusted Gross Income Applicable Percentage Over But Not Over $0 – $15,000 35% 15,000 – 17,000 34% 17,000 – 19,000 33% 19,000 – 21,000 32% 21,000 – 23,000 31% 23,000 – 25,000 30% 25,000 – 27,000 29% 27,000 – 29,000 28% 29,000 – 31,000 27% 31,000 – 33,000 26% 33,000 – 35,000 25% 35,000 – 37,000 24% 37,000 – 39,000 23% 39,000 – 41,000 22% 41,000 – 43,000 21% 43,000 – No limit 20% What is their child and dependent care credit?
Marty and Jean are married and have 4-year-old twins. Jean is going to school full-time for 9 months of the year, and Marty earns $44,500. The twins are in day care so Jean can go to school while Marty is at work. The cost of day care is $9,100. TABLE 6.1 CHILD AND DEPENDENT CARE CREDIT PERCENTAGES Adjusted Gross Income Applicable Percentage Over But Not Over $0 – $15,000 35% 15,000 – 17,000 34% 17,000 – 19,000 33% 19,000 – 21,000 32% 21,000 – 23,000 31% 23,000 – 25,000 30% 25,000 – 27,000 29% 27,000 – 29,000 28% 29,000 – 31,000 27% 31,000 – 33,000 26% 33,000 – 35,000 25% 35,000 – 37,000 24% 37,000 – 39,000 23% 39,000 – 41,000 22% 41,000 – 43,000 21% 43,000 – No limit 20% What is their child and dependent care credit?
Chapter5: Gross Income: Exclusions
Section: Chapter Questions
Problem 40P
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Question
Child and Dependent Care Credit (LO 7.3)
Marty and Jean are married and have 4-year-old twins. Jean is going to school full-time for 9 months of the year, and Marty earns $44,500. The twins are in day care so Jean can go to school while Marty is at work. The cost of day care is $9,100.
|
| Adjusted Gross Income | Applicable Percentage | |||
| Over | But Not Over | |||
| $0 | – | $15,000 | 35% | |
| 15,000 | – | 17,000 | 34% | |
| 17,000 | – | 19,000 | 33% | |
| 19,000 | – | 21,000 | 32% | |
| 21,000 | – | 23,000 | 31% | |
| 23,000 | – | 25,000 | 30% | |
| 25,000 | – | 27,000 | 29% | |
| 27,000 | – | 29,000 | 28% | |
| 29,000 | – | 31,000 | 27% | |
| 31,000 | – | 33,000 | 26% | |
| 33,000 | – | 35,000 | 25% | |
| 35,000 | – | 37,000 | 24% | |
| 37,000 | – | 39,000 | 23% | |
| 39,000 | – | 41,000 | 22% | |
| 41,000 | – | 43,000 | 21% | |
| 43,000 | – | No limit | 20% |
What is their child and dependent care credit?
$fill in the blank 1
Answer was wrong when i put $900 and also when put in 16000.
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