Mr. and Mrs. Arlette spent $5,900 for child care for their 12-year-old daughter. Mr. Arlette's earned income was $178,000, Mrs. Arlette's earned income was $33,100, and the AGI on their joint return was $225,200. Calculate their dependent care credit.

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The dependent care credit for taxpayers is a percentage of their qualified expenses, which in this case is $5,900. However, the credit is limited to the lesser of the earned incomes of the two spouses. Mrs. Arlette's earned income is the lower at $33,100. For 2021, the maximum expense allowed for two or more qualifying persons is $8,000, but since they only spent $5,900, that is the amount considered. The applicable percentage for their AGI level ($225,200) would typically be 20%. Therefore, the credit is 20% of $5,900, which equals $1,180. However, given the specific details provided, it seems there might have been a misunderstanding in the calculation process. For a couple with an AGI of $225,200, the credit rate should indeed be lower due to phaseouts, but without specific phaseout details or changes in tax law provided in the question, the calculation based on the standard understanding of the dependent care credit would lead to a different conclusion than the options suggest. Given the options provided and typical tax law, the correct calculation seems to be missing, suggesting a need for clarification or an assumption that there's a specific tax law or limit being applied that isn't detailed in the question. Based on standard tax law understanding and the information given, the expected answer would be $1,180, but none of the options directly match a standard calculation, indicating a possible specific scenario or a mistake in the question setup or understanding of the tax law as it applies here.

Mr and Mrs