Ivanna, who has three children under age 13, worked full-time while her husband, Sergio, was attending...

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Ivanna, who has three children under age 13, worked full-timewhile her husband, Sergio, was attending college for nine monthsduring the year. Ivanna earned $40,275 and incurred $8,175 of childcare expenses. Click here to access the percentage chart to us forthis problem. The amount of Ivanna and Sergio's credit for childand dependent care expenses is $
Computing the Child and Dependent Care Credit
Adjusted Gross Income
Over ButNot Over Applicable Rateof Credit
$ 0 $15,000 35%
15,000 17,000 34%
17,000 19,000 33%
19,000 21,000 32%
21,000 23,000 31%
23,000 25,000 30%
25,000 27,000 29%
27,000 29,000 28%
29,000 31,000 27%
31,000 33,000 26%
33,000 35,000 25%
35,000 37,000 24%
37,000 39,000 23%
39,000 41,000 22%
41,000 43,000 21%
43,000 No limit 20%

Answer & Explanation Solved by verified expert

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Child and dependent care credit Taxpayer incur expenditure to take care of their dependents so they can work Child and dependent care credit is an incentive to those having child and dependent care expenses Wellbeing of the qualifying individual must be the primary purpose of the eligible expenditure Qualifying individual Eligible expenditure incurred for the wellbeing of the qualifying individual are only allowed Conditions determining qualifying individual are 1 See Answer

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Adjusted Gross Income
Over		ButNot Over		Applicable Rateof Credit
	$ 0		$15,000	35%
	15,000		17,000	34%
	17,000		19,000	33%
	19,000		21,000	32%
	21,000		23,000	31%
	23,000		25,000	30%
	25,000		27,000	29%
	27,000		29,000	28%
	29,000		31,000	27%
	31,000		33,000	26%
	33,000		35,000	25%
	35,000		37,000	24%
	37,000		39,000	23%
	39,000		41,000	22%
	41,000		43,000	21%
	43,000		No limit	20%