Kylie is a single mom with two dependent children,Tanner,age 7 and Olivia,age 11.She has AGI of $36,000 and paid $5,300 to a qualified day care center for the two children.What amount of credit can Kylie receive for the child and dependent care credit?

Question

Quizplus · Accepted Answer

Kylie can claim up to 35% of her qualifying expenses for the child and dependent care credit. Her qualifying expenses include the $5,300 she paid to the day care center for her two children. Therefore, 35% of $5,300 is $1,855. However, the credit is capped at certain limits based on her AGI. For an AGI of $36,000, the credit is limited to $1,272. Therefore, D is the correct answer.

Kylie Is a Single Mom with Two Dependent Children,Tanner,age 7