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 $4,000 to care for her son. What is the amount of Jocelyn's child and dependent care credit if her AGI for the year was $30,000? (Exhibit 8-9)

Question

Quizplus · Accepted Answer

The maximum expenditure for one child is $3,000. The applicable percentage is 27%. So, the allowable credit is $810 ($3,000 × 27%).

Trudy Is Jocelyn's Friend