Problem 7-13
Child and Dependent Care Credit (LO 7.3)
Martha has a 3-year-old child and pays $10,000 a year in day care costs. Her salary is $45,000.
|
Adjusted Gross Income | Applicable Percentage | |||
Over | But Not Over | |||
$0 | – | $15,000 | 35% | |
15,000 | – | 17,000 | 34% | |
17,000 | – | 19,000 | 33% | |
19,000 | – | 21,000 | 32% | |
21,000 | – | 23,000 | 31% | |
23,000 | – | 25,000 | 30% | |
25,000 | – | 27,000 | 29% | |
27,000 | – | 29,000 | 28% | |
29,000 | – | 31,000 | 27% | |
31,000 | – | 33,000 | 26% | |
33,000 | – | 35,000 | 25% | |
35,000 | – | 37,000 | 24% | |
37,000 | – | 39,000 | 23% | |
39,000 | – | 41,000 | 22% | |
41,000 | – | 43,000 | 21% | |
43,000 | – | No limit | 20% |
How much is her child and dependent care credit?
Problem 7-13 Child and Dependent Care Credit (LO 7.3) Martha has a 3-year-old child and pays...
Problem 7-10 Child and Dependent Care Credit (LO 7.3) Clarita is a single taxpayer with two dependent children, ages 10 and 12. Clarita pays $3,000 in qualified child care expenses during the year. TABLE 6.1 CHILD AND DEPENDENT CARE CREDIT PERCENTAGES Adjusted Gross Income Applicable Percentage Over But Not Over $0 – $15,000 35% 15,000 – 17,000 34% 17,000 – 19,000 33% 19,000 – 21,000 32% 21,000 – 23,000 31% 23,000 – 25,000 30% 25,000 – 27,000 29% 27,000 –...
Problem 7-14 (Algorithmic) Child and Dependent Care Credit (LO 7.3) Marty and Jean are married and have 4-year-old twins. Jean is going to school full-time for 10 months of the year, and Marty earns $54,700. The twins are in day care so Jean can go to school while Marty is at work. The cost of day care is $9,600. TABLE 6.1 CHILD AND DEPENDENT CARE CREDIT PERCENTAGES Adjusted Gross Income Applicable Percentage Over But Not Over $0 – $15,000 35%...
Problem 7-9 Child and Dependent Care Credit (LO 7.3) Calculate the amount of the child and dependent care credit allowed for 2018 in each of the following cases, assuming the taxpayers had no income other than the stated amounts. TABLE 6.1 CHILD AND DEPENDENT CARE CREDIT PERCENTAGES Adjusted Gross Income Applicable Percentage Over But Not Over $0 – $15,000 35% 15,000 – 17,000 34% 17,000 – 19,000 33% 19,000 – 21,000 32% 21,000 – 23,000 31% 23,000 – 25,000 30%...
Adjusted Gross Income Over But Not Over Applicable Rate of Credit $ 0 $15,000 35% 15,000 17,000 34% 17,000 19,000 33% 19,000 21,000 32% 21,000 23,000 31% 23,000 25,000 30% 25,000 27,000 29% 27,000 29,000 28% 29,000 31,000 27% 31,000 33,000 26% 33,000 35,000 25% 35,000 37,000 24% 37,000 39,000 23% 39,000 41,000 22% 41,000 43,000 21% 43,000 No limit 20% Ivanna, who has three children under age 13, worked full-time while her husband, Sergio, was attending...
Emmanuel and Camille are married, file jointly, and have two children, ages three and seven, whom they support. Their AGI is $28,470. Click here to access Exhibit 13.3 Earned Income Credit and Phaseout Percentages. Carry out computations to two decimal places, and round your final answer to the nearest dollar. Enter the amount of Emmanuel and Camille's earned income credit: $_______ Exhibit 13.3 Child and Dependent Care Credit Computations Adjusted Gross Income Applicable Over But Not Over $15,000 0 15,000...
Tim and Martha paid $6.900 in qualified employment-related expenses for their three young children, who live with them in their household, Martha received $2,100 of dependent care assistance from her employer, which was properly excluded from gross income. The couple had $42,100 of AGI earned equally. Use Child and Dependent Care Credit AGI schedule a. What amount of child and dependent care tax credit can they claim on their Form 1040? b. How would your answer differ (if at all)...
Marion has an 11-year-old daughter. Please calculate her child and dependent care credit prior to any tax liability limitation under these two alternatives: a. Marion pays $4,000 a year in day care costs. Her salary is $32,000. b. Marion pays $8,000 a year in day care costs. Her salary is $80,000.