Question

What is the amount of dependent care credit allowed Alexandra, a divorced pharmacist, who pays $9,100 for the year 2017 to send her daughter to daycare while she works? The daughter is claimed as a dependent by Alexandra. Alexandra has adjusted gross income of $39,500 for the year.

$660

$0

$2,002

$600

Answer 1

the correct answer is $ 660

Explanation:

The maximum amount on which the credit can be claimed is $ 3,000 and the percentage will be dependent on income

for a person with $ 15000 or less income the percentage will 35%

and it will be reduced by 1% for increase in every $ 2000 income untill the income is $ 43,000 or more than the percentage will be 20%

So for the income for $ 39,500 the percentage will be 22% on $ 3000

So the credit will be = 3000 x 22% = $ 660