Question

Mr. and Mrs. Alexander have two dependent children. They paid $7,200 wages to a housekeeper to care for the children and $549 employer payroll tax on her wages. Mr. and Mrs. Alexander file a joint return. Assume the taxable year is 2019.

Compute their dependent care credit if one child is age 10, and the other is age 15. Mr. Alexander's earned income is $75,000, and Mrs. Alexander has no earned income. Their AGI is $81,300.

Compute their dependent care credit if one child is age 2, and the other is age 6. Mr. Alexander's earned income is $45,000, and Mrs. Alexander's earned income is $28,000. Their AGI is $81,300.

Answer 1

Answer:

81,300 - 75,000 = $ 6,300

Dependent care credit if one child is age 10, and the other is age 15 = $ 3,000

$45,000 + $28,000 = $ 73,000

81,300 - 73,000 = $ 8,300

Dependent care credit if one child is age 2, and the other is age 6 = $ 6,000

As the age of child should be under 13.