Question

0 Required information The following information applies to the questions displayed below] Julile paid a day care center to watch her two-year-old son while she worked as a computer programmer for a local start- up company What amount of child and dependent care credit can Julie claim in each of the following alternative scenarios? Exhibit 8-9 a. Julie paid $2,400 to the day care center and her AGI is $50,000 (all salary)

Answer 1

Following is the amount of eligible child and development care credit

The Child and Dependent Care Credit can be worth from 20% to 35% of some or all of the dependent care expenses you paid. The percentage you use depends on your income. If your income is below $15,000, you will qualify for the full 35%. The percentage falls by 1% for every additional $2,000 of income until it reaches 20%.

Income	% Fall
15000	35
17000	34
19000	33
21000	32
23000	31
25000	30
27000	29
29000	28
31000	27
33000	26
35000	25
37000	24
39000	23
41000	22
43000	21
45000 or above	20

In the given case Julie's salary is $50000 therefore she will be eligible for 20% of the expenses paid

Therefore eligible credit= expenses paid*20%

=$ 2400*20%

=$480