Mark and Stacy are married,file a joint return,and have one child,age 3.Their combined AGI is $55,000.Mark and Stacy incur $3,500 of child care expenses during the current year.Mark's employer reimburses him $1,500 under a qualified dependent care assistance plan.The child and dependent care credit is
A)$300.
B)$600.
C)$700.
D)$1,200.

Question

Quizplus · Accepted Answer

The child and dependent care credit is $300. The credit is calculated as follows:Child care expenses: $3,500Minus: Employer reimbursement: $1,500Eligible expenses: $2,000Credit rate: 20%Credit: $2,000 x 20% = $300

Mark and Stacy Are Married,file a Joint Return,and Have One