The following information applies to the questions displayed below.] ulie paid a day care center to watch her two-year-old son while she worked as a c company. What amount of child and dependent care credit can Julie claim in 2021 in each of xhibit 8-10
The following information applies to the questions displayed below.] ulie paid a day care center to watch her two-year-old son while she worked as a c company. What amount of child and dependent care credit can Julie claim in 2021 in each of xhibit 8-10
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:EXHIBIT 8-10 Child and Dependent Care Credit Percentage
Then the percentage is
50%
125,000
49
127,000
48
129,000
47
181,000
21
183,000
20
400,000
19
402,000
18
434,000
2
436,000
1
438,000
0
Source: Source: Internal Revenue Code. "§ 21. Expenses For Household And Dependent Care Services Necessary For Gainful Employment."
If AGI is over
S
0
But not over
$125,000
127,000
129,000
131,000
183,000
400,000
402,000
404,000
436,000
438,000
![!
Required information
[The following information applies to the questions displayed below.]
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
a. Julie paid $2,460 to the day care center and her AGI is $50,600 (all salary).
Child and dependent care credit
b. Julie paid $6,150 to the day care center and her AGI is $50,600 (all salary).
Child and dependent care credit
c. Julie paid $6,300 to the day care center and her AGI is $125,100 (all salary).
Child and dependent care credit
d. Julie paid $4,300 to the day care center and her AGI is $400,100 (all salary).
Child and dependent care credit
e. Julie paid $6,300 to the day care center and her AGI is $14,000 ($4,300 salary and $9,700 unearned income).
Child and dependent care credit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9d21e0a7-5372-4e78-a1cf-63417189e9f3%2F46e71016-4691-4b79-bf71-0c567a933f68%2F5zpcwia_processed.jpeg&w=3840&q=75)
Transcribed Image Text:!
Required information
[The following information applies to the questions displayed below.]
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
a. Julie paid $2,460 to the day care center and her AGI is $50,600 (all salary).
Child and dependent care credit
b. Julie paid $6,150 to the day care center and her AGI is $50,600 (all salary).
Child and dependent care credit
c. Julie paid $6,300 to the day care center and her AGI is $125,100 (all salary).
Child and dependent care credit
d. Julie paid $4,300 to the day care center and her AGI is $400,100 (all salary).
Child and dependent care credit
e. Julie paid $6,300 to the day care center and her AGI is $14,000 ($4,300 salary and $9,700 unearned income).
Child and dependent care credit
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