Problem 7-11 Child and Dependent Care Credit (LO 7.2, 7.3) Clarita is a single taxpayer that lives in the U.S. with two dependent children, ages 10 and 12. Clarita pays $3,000 in qualified child care expenses during the year. If her adjusted gross income (all from wages) for the year is $21,000 and she takes the standard deduction. Assume that Clarita's earned income is $70,000. Determine the net effect of the additional income on her total credits.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Problem 7-11
Child and Dependent Care Credit (LO 7.2, 7.3)
Clarita is a single taxpayer that lives in the U.S. with two dependent children, ages 10 and 12. Clarita
pays $3,000 in qualified child care expenses during the year. If her adjusted gross income (all from
wages) for the year is $21,000 and she takes the standard deduction.
Assume that Clarita's earned income is $70,000. Determine the net effect of the additional income on
her total credits.
Transcribed Image Text:Problem 7-11 Child and Dependent Care Credit (LO 7.2, 7.3) Clarita is a single taxpayer that lives in the U.S. with two dependent children, ages 10 and 12. Clarita pays $3,000 in qualified child care expenses during the year. If her adjusted gross income (all from wages) for the year is $21,000 and she takes the standard deduction. Assume that Clarita's earned income is $70,000. Determine the net effect of the additional income on her total credits.
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