Patricia, an unmarried taxpayer who is head of household, has adjusted gross income of $42,800 and incurs $4,000 of child care expenses for part-time care of her 8 year old son, Joshua. Patricia can shelter up to $5,000 (or her expenses if less) in an employer provided childcare reimbursement program or take the Child and Dependent Care Credit. If Patricia elects to participate in the employer provided program and has her expenses deducted from her reported salary instead of using the Child and Dependent Care Credit, what is the amount of her tax savings from choosing this option? Assume the 2020 tax year. DO NOT USE COMMAS OR DOLLAR SIGNS IN YOUR ANSWER!
Patricia, an unmarried taxpayer who is head of household, has adjusted gross income of $42,800 and incurs $4,000 of child care expenses for part-time care of her 8 year old son, Joshua. Patricia can shelter up to $5,000 (or her expenses if less) in an employer provided childcare reimbursement program or take the Child and Dependent Care Credit. If Patricia elects to participate in the employer provided program and has her expenses deducted from her reported salary instead of using the Child and Dependent Care Credit, what is the amount of her tax savings from choosing this option? Assume the 2020 tax year. DO NOT USE COMMAS OR DOLLAR SIGNS IN YOUR ANSWER!
Chapter8: Taxation Of Individuals
Section: Chapter Questions
Problem 52P
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT