Adrienne is a single mother with a six-year-old daughter who lived with her during the entire year. Adrienne paid $2,650 in child care expenses so that she would be able to work. Of this amount, $780 was paid to Adrienne’s mother, whom Adrienne cannot claim as a dependent. Adrienne had net earnings of $2,200 from her jewelry business. In addition, she received child support payments of $21,400 from her ex-husband. Use Child and Dependent Care Credit AGI schedule. Required: What amount, if any, of child and dependent care credit can Adrienne claim?

Adrienne is a single mother with a six-year-old daughter who lived with her during the entire year. Adrienne paid $2,650 in child care expenses so that she would be able to work. Of this amount, $780 was paid to Adrienne’s mother, whom Adrienne cannot claim as a dependent. Adrienne had net earnings of $2,200 from her jewelry business. In addition, she received child support payments of $21,400 from her ex-husband. Use Child and Dependent Care Credit AGI schedule. Required: What amount, if any, of child and dependent care credit can Adrienne claim?

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter10: Individuals: Income, Deductions, And Credits

Section: Chapter Questions

Problem 31P

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What amount, if any, of child and dependent care credit can Adrienne claim?

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Adrienne is a single mother with a six-year-old daughter who lived with her during the entire year. Adrienne paid $2,550 in child care expenses so that she would be able to work. Of this amount, $740 was paid to Adrienne’s mother, whom Adrienne cannot claim as a dependent. Adrienne had net earnings of $2,100 from her jewelry business. In addition, she received child support payments of $21,200 from her ex-husband. Use Child and Dependent Care Credit AGI schedule. Required: What amount, if any, of child and dependent care credit can Adrienne claim?