Martha has a 3-year-old child and pays $10,000 a year in day care costs. Her salary is $45,000. 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% How much is her child and dependent care credit? $
Martha has a 3-year-old child and pays $10,000 a year in day care costs. Her salary is $45,000. 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% How much is her child and dependent care credit? $
Chapter7: Tax Credits
Section: Chapter Questions
Problem 1P: Calculate the total child and other dependent credit for the following taxpayers. Please show your...
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Martha has a 3-year-old child and pays $10,000 a year in day care costs. Her salary is $45,000.
|
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% |
How much is her child and dependent care credit?
$
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