Business, 18.07.2020 20:01 edimilperdomo

Julie paid a day care center to watch her two-year-old son while she worked as a computer programmer for a local start-up company. What amount of child and dependent care credit can Julie claim in each of the following alternative scenarios?

a. Julie paid $2,000 to the day care center and her AGI is $50,000 (all salary).

b. Julie paid $5,000 to the day care center and her AGI is $50,000 (all salary).

c. Julie paid $4,000 to the day care center and her AGI is $25,000 (all salary).

d. Julie paid $2,000 to the day care center and her AGI is $14,000 (all salary).

e.
Julie paid $4,000 to the day care center and her AGI is $14,000 ($2,000 salary and $12,000 unearned income).

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Answer from: Astute

Answer and Explanation:

The computation of In each of the following alternative situations, Julie will demand the amount of child and dependent care credit is shown below:-

According to the 1st situation

Particulars Amount

a. Expenditure of dependent care $2,000

b. Qualifying expenses for one

dependent on limit $3,000

c. Earned income of Julie $50,000

d. Expenses eligible for credit $2,000 (which is least of a,b, and c)

e. Percentage rate on credit 20% (AGI over $43,000)

f. Child and dependent care credit $400 (2,000 × 20%)

According to the 2nd situation

Particulars Amount

a. Expenditure of dependent care $5,000

b. Qualifying expenses for one

dependent on limit $3,000

c. Earned income of Julie $50,000

d. Expenses eligible for credit $3,000 (which is least of a,b, and c)

e. Percentage rate on credit 20% (AGI over $43,000)

f. Child and dependent care credit $400 (3,000 × 20%)

According to the 3rd situation

Particulars Amount

a. Expenditure of dependent care $4,000

b. Qualifying expenses for one

dependent on limit $3,000

c. Earned income of Julie $25,000

d. Expenses eligible for credit $3,000 (which is least of a,b, and c)

e. Percentage rate on credit 30% (AGI over $25,000)

f. Child and dependent care credit $900 (3,000 × 30%)

According to the 4th situation

Particulars Amount

a. Expenditure of dependent care $2,000

b. Qualifying expenses for one

dependent on limit $3,000

c. Earned income of Julie $14,000

d. Expenses eligible for credit $2,000 (which is least of a,b, and c)

e. Percentage rate on credit 35% (AGI over $15,000)

f. Child and dependent care credit $700 (2,000 × 35%)

According to the 5th situation

Particulars Amount

a. Expenditure of dependent care $4,000

b. Qualifying expenses for one

dependent on limit $3,000

c. Earned income of Julie $2,000

d. Expenses eligible for credit $2,000 (which is least of a,b, and c)

e. Percentage rate on credit 35% (AGI over $15,000)

f. Child and dependent care credit $700 (2,000 × 35%)

Answer from: Quest

simpleton is the answer, this is simpleton work

Answer from: Quest

if you do not file your taxes you will not have a job, and you credit rate will go down.

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