Amanda SuttonWeek 5 homework Chapter 946- Tim and Martha paid $7,900 in qualified employment-related expenses for their three young children who live with them in their household. Martha received $1,800 of dependent care assistance from her employer, which was properly excluded from gross income. The couple had $57,000 of AGI earned equally. What amount of child and dependent care credit can they claim on their Form 1040? How would your answer differ (if at all) if the couple had AGI of $36,000 that was earned entirely by Tim?Answer $6000 is the amount of employment related expenses for two or more children and the amount will be reduced by the $1800 that Martha have earned from her employer. With that being said the allowed expense will be $4200 and since her AGI is $57000, Tim and Martha is allowed a credit that is equal to 20%of their expenses. If $36000 was earned entirely by Tim then they wouldn’t be no credit it would be zero, due to the fact that thus is a child care expenses credit. Since Marta was not employed, no credit will also be allowed.53-In 2016, Jeremy and Celeste, who file a joint return, paid the following amounts for their daughter, Alyssa, to attend the University of Colorado during academic year 2016–2017. Alyssa was in her first
You've reached the end of your free preview.
Want to read all 5 pages?
- Fall '19