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 child and dependent care credit for someone with an AGI of $30,000, paying $4,000 for care, would be 20% of the expenses. Therefore, the credit would be 20% of $4,000, which equals $800.

Trudy Is Jocelyn's Friend