Question

Jessica and Robert have two young children. They have $7,000 of qualified child care expenses and an AGI of $22,000 in 2019. What is their allowable child and dependent care credit considering their pre-credit tax liability

Answer 1

Answer:

$0

Explanation:

The computation of the their allowable child and dependent care credit is shown below:

In the case when the income is below $35,000 than full 35% would be allowed

But the qualified child expense would be limited to $6,000

So, here the amount would be

= $6,000 × 35%

= $1,860

Already there is a pre credit tax liability so $0 should be considered as it would not received any credit