Lecture 4 - Soln to self study 8-2 child care exp

Lecture 4 - Soln to self study 8-2 child care exp - Mrs....

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Solution to Self Study Problem 8-2 2009 earned income: Mr Pleasant 99,000 Mrs Pleasant 18,000 Mr. Pleasant's deduction: Least of: 1.) actual expenses (100 x 48 weeks) 4,800 2.) annual limit: 2 x 4,000 (>=7) 8,000 1x 7,000 (<7) 7,000 15,000 3.) 2/3 x earned income of 99000 66,000 4.) prescribed amount 6 weeks x 100 x 1 kids (>=7 yrs) 1,200 6 weeks x 175 x 1 kid (<7 yrs) 1,050 2,250 Least amount = Mr. P's deduction: 2,250
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Unformatted text preview: Mrs. Pleasant's deduction: Least of: 1.) actual expenses (100 x 48 weeks) 4,800 2.) annual limit: (same as above) 15,000 3.) 2/3 x earned income of 18,000 12,000 Least amount 4,800 Less: Mr. Pleasant's deduction 2,250 Mrs. Pleasant's deduction: 2,550 Mrs Pleasant is the lower income individual so she takes the deduction. However Mr. Pleasant can deduct for the 6 weeks while she was infirm....
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This note was uploaded on 03/25/2011 for the course ADMS 3520 taught by Professor S during the Summer '09 term at York University.

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