Question

Tim and Sandy have a ten-year-old daughter. During the current year, they spent $2,000 on childcare expenses at a daycare center and paid $1,500 in childcare expenses to Sandy's sister. Their child and dependent care credit will be calculated based on a maximum limit of $_____ in childcare expenses.

Answer 1

Answer:

$3000

Explanation:

In the United states, eligible child care expenses per dependent are limited to $3000. Since Tim and Sandy have only One 10 year old daughter which fall under the age 13 bracket for dependents gives them a maximum limits of $3000. It is important to note that of a couple has two or more child (dependents) they are eligible to $6000. A relative who is a care giver qualifies if expenses are paid to the relative on conditions that the relative isn't a dependent non child of the couple.

Answer 2

Answer:

The answer is $3000.

Therefore,

Tim and Sandy have a ten-year-old daughter. During the current year, they spent $2,000 on childcare expenses at a daycare center and paid $1,500 in childcare expenses to Sandy's sister. Their child and dependent care credit will be calculated based on a maximum limit of $3000 in childcare expenses.

Refer below for the explanation.

Explanation:

As per the law of US the child care estimate is around 3000 dollars, depending on how many they have.