M is a student spouse and deemed to be earning $500 per month for the time he attends college if there are two or more qualifying individuals in the household.
a. If M is enrolled as a full time student , deemed income from Sep to Dec = 500*4 = 2000
Their AGI is 23000 and applying the applicable rate of credit, i.e. 31 %
Dependent care credit is limited to M's deemed income ( $6000 is the ceiling) = 2000 *31% = $620
b. If M attends school from Jan to June and Sep to Dec = 10 * 5000 = 5000
Their AGI is 23000 and applying the applicable rate of credit, i.e. 31 %
Dependent care credit is limited to M's deemed income ( $6000 is the ceiling) = 5000 *31% = $1550
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