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23 March, 10:29

Tony and Lisa are married and file a joint return. They have two children, ages 2 and 4. Their combined AGI is $86,300. Tony's earned income is $50,000; Lisa's is $36,300. They incur $6,200 in child care expenses ($3100 per child) to enable them to be employed during the current year. Their child and dependent care credit is

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  1. 23 March, 10:51
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    Their child and dependent care credit is $1200.

    Explanation:

    The maximum credit amount is $6000 for two or more children under the age of 13

    Their child and dependent care credit

    = $6000*20%

    = $1200

    Therefore, Their child and dependent care credit is $1200.
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