Question

3. Jane and Jerry are married and have 2 children. They incur $6,500 of child care expenses for the year. Jane earned $47,000 and Jerry earned $5,000 during the year. Jane was reimbursed for $2,000 of her child care expenses by her employer. Because their AGI is in excess of $43,000 the child care credit percentage is 20%. How much will their child care credit be for the year? Would the amount of the credit be different if Jane wasn’t reimbursed for any of the expenses?

Answer 1

solution:

given that

Jane and Jerry are married and have 2 kids.

what's more,

They bring about $6,500 of youngster care costs for the year. Jane earned $47,000 and Jerry earned $5,000 amid the year.

additionally referenced that

Jane was repaid for $2,000 of her youngster care costs by her manager.

presently

finding the measure of the credit be extraordinary if Jane wasn't repaid for any of the costs:

1. kid Care credit for the year if exp repaid by the business = ($6500-$ 2000) X 20% = $ 900.

2. Kid Care credit for the year if exp not repaid by the business = ($6500-0) X 20% = $ 1300