Ivanna, who has three children under age 13, worked full-time while her spouse, Sergio, was attending...

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Ivanna, who has three children under age 13, worked full-time while her spouse, Sergio, was attending...

Ivanna, who has three children under age 13, worked full-time while her spouse, Sergio, was attending college for nine months during the year. Ivanna earned $62,700 and incurred $9,025 of child care expenses.

Ivanna and Sergio's credit for child and dependent care expenses is $________?

business accounting

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Answer 1

Answer #1

Eligible expenses = 9,025

But they are limited to $6,000 only.

Earned income of Ivana = $62,700

Deemed earned income of Sergio = $250 X 9 = 2,250

As AGI of sergio is less than eligible expenses, eligible expenses are considered as $2,250 only.

Amount of credit = 2,250 X 20% (for the given AGI ) = $450

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Answer 2

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Ivanna, who has three children under age 13, worked full-time while her spouse, Sergio, was attending...

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