Tim and Martha paid $8,100 in qualifie

Income Tax Fundamentals 2020
38th Edition
ISBN:9780357391129
Author:WHITTENBURG
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Chapter7: Tax Credits
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Tim and Martha paid $8,100 in qualified employment-related expenses for their three young children who live with them in their
household. Martha received $2,900 of dependent care assistance from her employer, which was properly excluded from gross
income. The couple had $56,600 of AGI earned equally. Use Child and Dependent Care Credit AGI schedule.
Required:
a. What amount of child and dependent care credit can they claim on their Form 1040?
b. How would your answer differ (if at all) if the couple had AGI of $36,900 that was earned entirely by Martha?
a. Child and dependent care tax credit
b. Child and dependent care tax credit
Amounts
Transcribed Image Text:Tim and Martha paid $8,100 in qualified employment-related expenses for their three young children who live with them in their household. Martha received $2,900 of dependent care assistance from her employer, which was properly excluded from gross income. The couple had $56,600 of AGI earned equally. Use Child and Dependent Care Credit AGI schedule. Required: a. What amount of child and dependent care credit can they claim on their Form 1040? b. How would your answer differ (if at all) if the couple had AGI of $36,900 that was earned entirely by Martha? a. Child and dependent care tax credit b. Child and dependent care tax credit Amounts
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