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Problem $1-$ put all of your final answers in the yellow boxes below, and show any additional work in the green identified area

Child care deduction calculation$-$ Mrs$.$ Byrd:

Lesser of A or B

A: Least of $3$ things

Total eligible child care costs paid

Annual maximum child care expense amount

$\frac{2}{3}*($Earned income$)$

A: Least of $1,2,$ or $3$

B: Periodic amount $*$ number of weeks lower income spouse was hospitalized

Mrs$.$ Byrd$\text{'}$s child care deduction: lesser of A or B:

Child care deduction calculation$-$ Mr$.$ Byrd:

Deduction $=$ Least of $3$ things

Total eligible child care costs paid

Annual maximum child care expense amount

$\frac{2}{3}*($Earned income$)$

Least of $1,2,$ or $3$

Less: Mrs$.$ Byrd$\text{'}$s deduction

Mr$.$ Byrd$-$deduction:

Show any additional work$/$ notes here: Problem $1$: Chapter $9$: Child Care Deduction

Instructions:

Both Mr$.$ Byrd and Mrs$.$ Byrd are employed. During $2023,$ Mr$.$ Byrd had opened a restaurant and had business income

of $$6500.$ Mr$.$ Byrd also had net employment income of $$51300,$ after deducting $$9650$ of employment deductions. He

also had $$7,000$ of interest income. Ms$.$ Byrd had gross employment income of $$82000,$ which included taxable

benefits of $$12,000.$ She also had $$7200$ of dividend income. Since they both had to work long hours, they had to pay

for care of their children.

They have four children: Clarence $(15$ years old and eligible for the disability tax credit$),$ Ida $(11$ years old$),$ Gary $(9$ years

old$),$ and Pearson $(2$ years old$).$

Payments for childcare during the year amounted to $$625$ per week for $52$ weeks of the year. Additionally, they sent

Clarence, Ida, and Gary to overnight summer camp for $4$ weeks each, and paid $$5000$ total for this camp.

Also during the current year, there was a period of $12$ weeks during which Mr$.$ Byrd was hospitalized due to injuries

suffered during a hockey game.

Required: Determine the maximum amount that can be deducted by Mr$.$ and Mrs$.$ Byrd for the year ending December

$31,2023$ for child care expenses. Final answers to each step should be filled in the yellow boxes on the $"$P$1-$Response"

tab. Show any extra work or notes in the green space provided on the $"$P$1-$Response" tab.

These things below are to be calculated with the help of above information:

Child care deduction calculation$-$ Mrs$.$ Byrd:

Lesser of A or B

A: Least of $3$ things

$1)$ Total eligible child care costs paid

$2)$ Annual maximum child care expense amount

$3)2/3*($Earned income$)$

A: Least of $1,2,$ or $3$

B: Periodic amount $*$ number of weeks lower income spouse was hospitalized

Mrs$.$ Byrd$\text{'}$s child care deduction: lesser of A or B:

Child care deduction calculation$-$ Mr$.$ Byrd:

Deduction$=$ Least of $3$ things

$1)$ Total eligible child care costs paid

$2)$ Annual maximum child care expense amount

$3)2/3*($Earned income$)$

Least of $1,2,$ or $3$

Less: Mrs$.$ Byrd$\text{'}$s deduction

Mr$.$ Byrd$-$ deduction:

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