Kevin and Sue have two children,ages 8 and 14.They spend $6,200 per year on eligible employment related expenses for the care of their children after school.Kevin earned a salary of $20,000 and Sue earned a salary of $18,000.What is the amount of the credit for child and dependent care expenses?

Question

Quizplus · Accepted Answer

$690 = 23% × $3,000.Kevin and Sue have only one qualifying dependent (i.e. ,the 8 year-old);therefore,only up to $3,000 of expenditures qualify for the credit.The $3,000 statutory ceiling is less than the earned income ceiling of $18,000.

Kevin and Sue Have Two Children,ages 8 and 14