Answer:
The correct answer to the following question is $810 .
Explanation:
For calculating the child and dependent care credit , we will first take out qualified dependent care expenses and then the percentage of qualified dependent care expenses.
So firstly, qualified dependent care expenses would be least of the three following given amount -
1) AGI of Jocelyn - $30,000
2) Amount paid to Trudy - $4000
3) $3000 available in case of one child.
So here $3000 would be the qualified dependent care expenses
Now the percentage of qualified dependent care expenses would be -
Maximum percentage available - 35% , but this is available to a person who has AGI of less than $15,000.
But Jocelyn has $30,000 of AGI, then 1% would decrease by every $2000,
so reduction in percentage = $30,000 - $15,000 / $2000 x 100
= 7.5% if rounded up to 8% , then percentage of qualified dependent care expenses would be 35% - 8% = 27%
Now child and dependent care credit = $3000 x 27%
=$810
=
