Karen and Kimo are married and file a joint return. They have two children, Kay...
80.2K
Verified Solution
Link Copied!
Question
Accounting
Karen and Kimo are married and file a joint return. They have two children, Kay and Tu, that live at home and whom they fully support. Kay is 6 and Tu is 8 years old. Karens mother, Ellen who is totally blind, also lives with them. Ellens only source of income is non-taxable social security benefits. Karen and Kimo cover 90% of Ellens support costs. In order for Karen and Kimo to both work, they pay care providers to take care of Ellen all day and Kay and Tu after school. Their total care costs for the year were: Ellen $14,000, Kay $4,800, and Tu $4,800. During the year Karen earned salary of $62,000 and Kimo earned salary of $59,000. The couple do not have any other gross income or deductions for AGI. Calculate the dollar amount of Karen and Kimos tax credit for child and dependent care expenses. Show your work including all calculations.
Solution Total AGI: 121K 121K > 43K so take 20% $6,000 * 0.2 = 1200 where is $6,000 from????
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.