Kobe is a single dad with two dependent children,Lizzie,age 7 and Leslie,age 3.He has AGI of $51,000 and paid $3,700 to a qualified day care center.What amount of credit can Kobe receive for the child and dependent care credit?
A)$0.
B)$740.
C)$3,700.
D)$10,200.

Question

Quizplus · Accepted Answer

Kobe can receive a credit for the child and dependent care credit based on his expenses for the qualified day care center. The maximum expense allowed for two or more qualifying persons is $6,000. Since his AGI is $51,000, he falls into the category where the applicable percentage is 20%. Therefore, the credit is calculated as 20% of $3,700 (his actual expenses), which equals $740.

Kobe Is a Single Dad with Two Dependent Children,Lizzie,age 7