George and Kelly have their three children in daycare at an exclusive River Oaks pre-kindergarten center. They incur $20,000 in expenses to keep their children in daycare. George is a physician and Kelly is an assistant district attorney. Together their adjusted gross income is $450,000. What amount can they claim as a child-care credit?

Question

Quizplus · Accepted Answer

The child-care credit is a tax credit that helps families with the cost of child care. The credit is available to families with children under the age of 13 who are in the care of a qualified provider. The maximum credit is $1,200 per child, and the credit is phased out for families with incomes over $43,000. In this case, George and Kelly have three children in daycare, and their adjusted gross income is $450,000. This means that they are eligible for the maximum child-care credit of $1,200 per child, for a total of $3,600.

George and Kelly Have Their Three Children in Daycare at an Exclusive