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.

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

Note: $450 is wrong.

business accounting

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Answer 1

Answer #1

Answer:-

It is assumed that Siergo is fully employed and have earned $500 each for

9 months so total deemed earning for him is $4500 (500*9)

As both as AGI of $62,700, Hence they are allowed tax credit of 20%.

Therefore the credit available to them is $900 for the year.

[Maximum expenses allowed for two qualifying individuals is $6000,but is restricted to Serigo's deemed earned income which is $4,500,so 20% of 4,500].

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Answer 2

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