Trudy is Jocelyn's friend. Trudy looks after Jocelyn's four-year-old son during the day so Jocelyn can go to work. During the year, Jocelyn paid Trudy $4,180 to care for her son. What is the amount of Jocelyn's child and dependent care credit if her AGI for the year was $31,800? (Exhibit 8-9)

Question

Quizplus · Accepted Answer

The child and dependent care credit for Jocelyn would be $780. This is calculated based on her AGI and the amount she paid for child care. The IRS allows a percentage of qualifying expenses to be credited, which decreases as AGI increases. Given Jocelyn's AGI of $31,800, she falls within a range that allows her to claim a certain percentage of the $4,180 she paid for child care. The exact percentage can vary, but the calculation based on the provided options and typical IRS guidelines leads to a credit of $780.

Trudy Is Jocelyn's Friend