Problem 13-38 (LO. 4) Paul and Karen Kent are married, and both are employed (Paul...
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Problem 13-38 (LO. 4) Paul and Karen Kent are married, and both are employed (Paul earns $44,000 and Karen earns $9,000 during 2021). Paul and Karen have two dependent children, both under the age of 13 (Samuel and Joy). In order to work, Paul and Karen pay $3,800 ($1,900 for each child) to Sunnyside Day Care Center (422 Sycamore Road, Fort Worth, TX 76028; Employer Identification Number: 11-2345678) to care for their children while they are working. Click to view Applicable Rate of Credit based on Adjusted Gross Income. Assuming that Paul and Karen file a joint return, what, if any, is their tax credit for child and dependent care expenses? X Exhibit 13.3 2021 Child and Dependent Care Credit Computations Adjusted Gross Income Over But Not Over Credit Rate Adjusted Gross Income Over But Not Over Credit Rate 50% 4996 489 47% 4696 459 449 4396 $ 0 125,000 127,000 129,000 131,000 133,000 135,000 137,000 139,000 141,000 143,000 145,000 147,000 149,000 151,000 153,000 $125,000 127,000 129,000 131,000 133,000 135,000 137,000 139,000 141,000 143,000 145,000 147,000 149,000 151,000 153,000 155,000 $155,000 157,000 159,000 161,000 163,000 165,000 167,000 169,000 171,000 173,000 175,000 177,000 179,000 181,000 183,000 400,000 $157,000 159,000 161,000 163,000 165,000 167,000 169,000 171,000 173,000 175,000 177,000 179,000 181,000 183,000 400,000 34% 339 3296 31% 30% 299 289 27% 26% 2596 24% 2396 2296 21% 20% 42% 41% 40% 399 3896 37% 36% 35%
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