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. EXHIBIT 8-10 Child and Dependent Care Credit Percentage If AGI is over But not over Then the percentage is $ 0 $125,000 50% 125,000 127,000 49 127,000 129,000 48 129,000 131,000 47 181,000 183,000 21 183,000 400,000 20 400,000 402,000 19 402,000 404,000 18 434,000 436,000 2 436,000 438,000 1 438,000 0 a. Julie paid $2,340 to the day care center and her AGI is $53,400 (all salary). b. Julie paid $5,850 to the day care center and her AGI is $53,400 (all salary). c. Julie paid $5,700 to the day care center and her AGI is $126,600 (all salary).
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. EXHIBIT 8-10 Child and Dependent Care Credit Percentage If AGI is over But not over Then the percentage is $ 0 $125,000 50% 125,000 127,000 49 127,000 129,000 48 129,000 131,000 47 181,000 183,000 21 183,000 400,000 20 400,000 402,000 19 402,000 404,000 18 434,000 436,000 2 436,000 438,000 1 438,000 0 a. Julie paid $2,340 to the day care center and her AGI is $53,400 (all salary). b. Julie paid $5,850 to the day care center and her AGI is $53,400 (all salary). c. Julie paid $5,700 to the day care center and her AGI is $126,600 (all salary).
Chapter10: Deductions And Losses: Certain Itemized Deductions
Section: Chapter Questions
Problem 35P
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Question
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.
EXHIBIT 8-10 Child and Dependent Care Credit Percentage
| If AGI is over | But not over | Then the percentage is |
|---|---|---|
| $ 0 | $125,000 | 50% |
| 125,000 | 127,000 | 49 |
| 127,000 | 129,000 | 48 |
| 129,000 | 131,000 | 47 |
| 181,000 | 183,000 | 21 |
| 183,000 | 400,000 | 20 |
| 400,000 | 402,000 | 19 |
| 402,000 | 404,000 | 18 |
| 434,000 | 436,000 | 2 |
| 436,000 | 438,000 | 1 |
| 438,000 | 0 |
a. Julie paid $2,340 to the day care center and her AGI is $53,400 (all salary).
b. Julie paid $5,850 to the day care center and her AGI is $53,400 (all salary).
c. Julie paid $5,700 to the day care center and her AGI is $126,600 (all salary).
d. Julie paid $3,700 to the day care center and her AGI is $401,600 (all salary).
e. Julie paid $5,700 to the day care center and her AGI is $14,000 ($3,700 salary and $10,300 unearned income).
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VIEWRequired (a) : Julie paid $2,340 to the day care center and her AGI is $53,400 (all salary).
VIEWRequired (b) : Julie paid $5,850 to the day care center and her AGI is $53,400 (all salary)
VIEWRequired (c) : Julie paid $5,700 to the day care center and her AGI is $126,600 (all salary)
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