1. Marty and Jean are married and have 4-year-old twins. Jean is going to school full-time for 9 months of the year, and Marty e

Question

3 years ago

6

1. Marty and Jean are married and have 4-year-old twins. Jean is going to school full-time for 9 months of the year, and Marty e

arns $45,000. The twins are in day care so Jean can go to school while Marty is at work. The cost of day care is $10,000. What is their child and dependent care credit? Please explain your calculation. _________________________________________________________________

Business

1 answer:

Pavel [41] · Answer 1 · 2022-05-27T13:54:19+03:00

Pavel [41]3 years ago

4 0

Answer: $2,000

Explanation:

-Use form 2441 on the IRS website for 2019.

-Wages earned=$45,000, therefore, it would be between "over 43,000 but not over 'No Limit' " which is 20% (.20)

-$10,000(paid in daycare) × .20 = $2,000