Question

Tony and Lisa are married and file a joint return. They have two children, ages 2 and 4. Their combined AGI is $86,300. Tony's earned income is $50,000; Lisa's is $36,300. They incur $6,200 in child care expenses ($3100 per child) to enable them to be employed during the current year. Their child and dependent care credit is

Answer 1

Their child and dependent care credit is $1200.

Step-by-step explanation:

The maximum credit amount is $6000 for two or more children under the age of 13

Their child and dependent care credit

= $6000*20%

= $1200

Therefore, Their child and dependent care credit is $1200.