Fundamentals of Taxation 2011 4th Edition by Ana Cruz, Debra Prendergast, Dan Schisler, Michael Deschamps

Exercise 28

Adrienne is a single mother with a 6-year-old daughter who lived with her during the entire year. Adrienne paid $2,900 in child care expenses so that she would be able to work. Of this amount, $500 was paid to Adrienne's mother whom Adrienne cannot claim as a dependent. Adrienne earned $1,900 from her job as a freelance writer and received alimony payments of $21,000 from her ex-husband. What amount, if any, of child and dependent care tax credit can Adrienne claim?