McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 81

Julie paid a day care center to watch her two-year old son this year while she worked as a computer programmer for a local start-up company.What amount of child and dependent care credit can Julie claim in each of the following alternative scenarios?
a.Julie paid $2,000 to the day care center and her AGI is $50,000 (all salary).b.Julie paid $5,000 to the day care center and her AGI is $50,000 (all salary).c.Julie paid $4,000 to the day care center and her AGI is $25,000 (all salary).d.Julie paid $2,000 to the day care center and her AGI is $14,000 (all salary).e.Julie paid $4,000 to the day care center and her AGI is $14,000 ($2,000 salary and $12,000 unearned income).