Income Tax Fundamentals 2020
38th Edition
ISBN: 9780357391129
Author: WHITTENBURG
Publisher: Cengage
expand_more
expand_more
format_list_bulleted
Question
Chapter 7, Problem 13P
To determine
Introduction:The taxpayers are allowed a credit for expenses on child care and certain other dependents. To avail this the dependent must be either under the age of 13 or be a dependent or spouse of any age who is incapable of self-care. If the child belongs to divorced parents, the child need not be dependent on the taxpayer claiming the credit.
M’s earned income credit and child and dependent care credit for 2019.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Martha has a 3-year old child and pays $10,000 a year in day care cost. Her salary is $45,000. How much is her child and dependent care credit?
Martha and Jean are married and have 4-year old twins. Jean is going to school full-time for 9 months of the year, and Martha earns $45,000. The twins are in day care so Jean can go to school while Martha is at work. The cost of daycare is $10,000. What is their child and dependent care credit? Please explian calculations.
Jack paid $5,000 in daycare expenses for his five-year-old daughter so he could work. His AGI for the year was $37,500 (all earned income). What is the amount of his child and dependent care credit? Show your working!!
Chapter 7 Solutions
Income Tax Fundamentals 2020
Ch. 7 - Russ and Linda are married and file a joint tax...Ch. 7 - Jennifer is divorced and files a head of household...Ch. 7 - Prob. 3MCQCh. 7 - Prob. 4MCQCh. 7 - Which of the following is not a requirement to...Ch. 7 - For purposes of determining income eligibility for...Ch. 7 - Prob. 7MCQCh. 7 - Prob. 8MCQCh. 7 - Which of the following costs is not a qualified...Ch. 7 - Prob. 10MCQ
Ch. 7 - Prob. 11MCQCh. 7 - Prob. 12MCQCh. 7 - Joan, a single mother, has AGI of $61,500 in 2019....Ch. 7 - Prob. 14MCQCh. 7 - Prob. 15MCQCh. 7 - Prob. 16MCQCh. 7 - Prob. 17MCQCh. 7 - Prob. 18MCQCh. 7 - Prob. 19MCQCh. 7 - Prob. 20MCQCh. 7 - Virginia and Richard are married taxpayers with...Ch. 7 - Calculate the total child and other dependent...Ch. 7 - Prob. 2PCh. 7 - Prob. 3PCh. 7 - Prob. 4PCh. 7 - Prob. 5PCh. 7 - Prob. 6PCh. 7 - Prob. 8PCh. 7 - Prob. 9PCh. 7 - Clarita is a single taxpayer with two dependent...Ch. 7 - Prob. 12PCh. 7 - Prob. 13PCh. 7 - Marty and Jean are married and have 4 -year-old...Ch. 7 - Prob. 15PCh. 7 - Prob. 16PCh. 7 - Prob. 17PCh. 7 - Prob. 18PCh. 7 - Janie graduates from high school in 2019 and...Ch. 7 - Prob. 20PCh. 7 - Prob. 21PCh. 7 - Carl and Jenny adopt a Korean orphan. The adoption...Ch. 7 - Prob. 23PCh. 7 - Prob. 24PCh. 7 - Prob. 25P
Knowledge Booster
Similar questions
- Martin and Rachel are married and have a 3-year-old child. Martin is going to medical school full-time for 12 months of the year and Rachel earns $45,000. Their child is in day care so Martin can go to school while Rachel is at work. The cost of their day care is $10,000. What is their child and dependent care credit? Please show your calculations.arrow_forwardJulie paid $3,300 to the day care center and her AGI is $401,200. What amount of child and dependent care credit can Julie claim in 2021?arrow_forwardSuppose Gretchen's health insurance has a $500 annual deductible. Gretchen is responsible for 20 percent co-pay when she meets her deductible. If Gretchen has $800 in medical expenses this year, how much must she pay?arrow_forward
- Samantha makes $28.00 per hour and is paid for a 40 hour work week. She pays 15% federal income tax, 6.2% social security, 1.45% medicare, and she lives in a state with no state income tax. She pays 3% of her gross income for health insurance and pays $25.00 per month for life insurance. What is her gross annual salary? What is her gross monthly salary? What is her net monthly salary?arrow_forwardMary is a single mother with 2 children: Ted, age 14, and Cindy, age 10. Her adjusted gross income (AGI) is $60,000. In the current year, Mary spent $2,000 for after-school care for Ted and $4,000 for after-school care for Cindy. What is Mary's dependent care credit for the current year? $600 $1,200 $1,000 $800 SOarrow_forwardNancy is a widow with two teenage children. Nancy's gross income is 54200 per month, and taxes take about 22% of her income. Using the income method, Nancy calculates she will need to purchase about eight times her disposable income in life insurance to meet her needs. How much insurance should Nancy purchase?arrow_forward
- Peter and Paula are married. Paula earns $60,000 per year and Peter is currently staying home with the two children. She contributes 10% of her salary to her retirement plan. In addition her employer makes a 4% matching contribution. Peter contributes $6,000 a year to an IRA. What is their total saving rate?arrow_forwardMarty and Jean are married and have 4-year-old twins. Jean is going to school full-time for 7 months of the year, and Marty earns $56,900. The twins are in day care so Jean can go to school while Marty is at work. The cost of day care is $8,100. TABLE 6.1 CHILD AND DEPENDENT CARE CREDIT PERCENTAGES Adjusted Gross Income Over $0 15,000 17,000 19,000 21,000 23,000 25,000 27,000 29,000 31,000 33,000 35,000 37,000 39,000 41,000 43,000 - - - But Not Over $15,000 17,000 19,000 21,000 23,000 25,000 27,000 29,000 31,000 33,000 35,000 37,000 39,000 41,000 43,000 No limit What is their 2022 child and dependent care credit? X Applicable Percentage 35% 34% 33% 32% 31% 30% 29% 28% 27% 26% 25% 24% 23% 22% 21% 20%arrow_forwardIn 2021, Ivanna, who has three children under age 13, worked full-time while her husband, Sergio, was attending college for nine months during the year. Ivanna earned $47,000 and incurred $6,400 of child care expenses. Click here to access the percentage chart to us for this problem. Determine amount of Ivanna and Sergio's child and dependent care credit. 900 Xarrow_forward
- Dianne earns 19,600 per year. Her employer deducts 2,800 per year for income and social security taxes. How much money does she have for other expenses each month?arrow_forwardMary is 66 years old and receives full old-age benefits from Social Security-in her case, $1,200 per month. Her husband Ralph, age 68, who has not worked enough quarters outside the home to be covered in his own right, receives 50% of what Mary receives each month ($600). Assume that Mary dies tomorrow. What will Ralph's Social Security benefit be? a. $600 b. $1,200 c. $1,800 d. $2.400arrow_forwardKim paid her nanny $20,000 during 2021 to watch her three children, Finn (3), Rachel (5) and Caitlyn (7) If Kim's AGI is $126,000, what amount of the dependent care credit would she be able to claim? O a. $7,840 O b. $9,800 c. $16,000 O d. $20,000arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Individual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENT
Individual Income Taxes
Accounting
ISBN:9780357109731
Author:Hoffman
Publisher:CENGAGE LEARNING - CONSIGNMENT