please answer all three parts within 30 minutes. its urgent.
Chapter6: Business Expenses
Section: Chapter Questions
Problem 56P
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please answer all three parts within 30 minutes. its urgent.
Transcribed Image Text: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 2021 in each of the following alternative scenarios? Use
Exhibit 8-10
c. Julie paid $4,400 to the day care center and her AGI is $125,300 (all salary).
Child and dependent care credit
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 2021 in each of the following alternative scenarios? Use
Exhibit 8-10
d. Julie paid $2,400 to the day care center and her AGI is $400,300 (all salary).
Child and dependent care credit
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 2021 in each of the following alternative scenarios? Use
Exhibit 8-10
e. Julie paid $4,400 to the day care center and her AGI is $14,000 ($2,400 salary and $11,600 unearned income).
Child and dependent care credit
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
Source: Source: Internal Revenue Code. "§ 21. Expenses For Household And Dependent Care Services Necessary For Gainful Employment."
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