Problem 7-9 Child and Dependent Care Credit (LO 7.3) Calculate the amount of the child and dependent care credit allowed

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Problem 7-9 Child and Dependent Care Credit (LO 7.3) Calculate the amount of the child and dependent care credit allowed

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Problem 7-9
Child and Dependent Care Credit (LO 7.3)
Calculate the amount of the child and dependent care credit
allowed before any tax liability limitations or other credits for
2021 in each of the following cases, assuming the taxpayers had no
income other than the stated amounts.
Question Content Area
a. William and Carla file a joint tax
return. Carla earned $27,500 during the year, while William
attended law school full-time for 9 months and earned no income.
They paid $3,500 for the care of their 3-year-old child, Carl.
Round your answer to the nearest whole dollar.
Question Content Area
b. Raymond and Michele file a joint tax
return. Raymond earned $83,000 during the year, while Michele
earned $139,000 for the year from a part-time job. They paid
$17,000 for the care of their two children under age 13.
Question Content Area
c. Beth is a single taxpayer who has two
dependent children under age 5. Beth earned $425,500 in wages
during the year and paid $26,700 for the care of her children.
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