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% 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%   a.  William and Carla file a joint tax return. Carla earned $26,000 during the year, while William attended law school full-time for 10 months and earned no income. They paid $3,500 for the care of their 3-year-old child, Carl. $ b.  Raymond and Michele file a joint tax return. Raymond earned $32,500 during the year, while Michele earned $8,000 for the year from a part-time job. They paid $7,000 for the care of their two children under age 13.$ c.  Beth is a single taxpayer who has two dependent children under age 5. Beth earned $23,500 in wages during the year and paid $6,700 for the care of her children.$

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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%
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%
 

a.  William and Carla file a joint tax return. Carla earned $26,000 during the year, while William attended law school full-time for 10 months and earned no income. They paid $3,500 for the care of their 3-year-old child, Carl.
$

b.  Raymond and Michele file a joint tax return. Raymond earned $32,500 during the year, while Michele earned $8,000 for the year from a part-time job. They paid $7,000 for the care of their two children under age 13.
$

c.  Beth is a single taxpayer who has two dependent children under age 5. Beth earned $23,500 in wages during the year and paid $6,700 for the care of her children.
$

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