FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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 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%
 

If her adjusted gross income (all from wages) for the year is $18,500, calculate Clarita's child and dependent care credit for 2018.
$

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