Chapter 7, Problem 9P

a

To determine

Introduction:The taxpayers are allowed a credit for expenses on child care and certain other dependents. To avail this, the dependent must be either under the age of 13 or be a dependent or spouse of any age who is incapable of self-care. If the child belongs to divorced parents, the child need not be dependent on the taxpayer claiming the credit.

The amount of child and dependent care credit for W and C, where C earns $27,500 and W has no income and they paid $3,500 for the care of their 3-year-old child.

b

To determine

Introduction:The taxpayers are allowed a credit for expenses on child care and certain other dependents. To avail this, the dependent must be either under the age of 13 or be a dependent or spouse of any age who is incapable of self-care. If the child belongs to divorced parents, the child need not be dependent on the taxpayer claiming the credit.

The amount of child and dependent care credit for R and M, where R earns $32,500 and W earned$9,000 and they paid $7,000 for the care of their two children under 13 years.

c

To determine

Introduction:The taxpayers are allowed a credit for expenses on child care and certain other dependents. To avail this, the dependent must be either under the age of 13 or be a dependent or spouse of any age who is incapable of self-care. If the child belongs to divorced parents, the child need not be dependent on the taxpayer claiming the credit.

The amount of child and dependent care credit for B, where B is a single taxpayer earns $25,500 and paid $6,700 for the care of two dependent children.