Question

Nora Hayes, a widow, maintains a home for herself and her two dependent preschool children. In 2019, Nora's earned income and adjusted gross income was $44,000. During 2019, Nora paid work-related expenses of $6,000 for a housekeeper to care for her children. How much can Nora claim for child care credit in 2019?

Answer 1

$1,200

Step-by-step explanation:

Data provided in the question:

Nora Hayes is a widow

Nora's earned income and adjusted gross income = $44,000

Work-related expenses paid = $6,000

Now,

Since,

Nora have two dependent preschool children

Thus,

Total $6,000 paid for child care qualifies for the credit.

Therefore,

Tax credit for Nora = 20% of child care expenses

= 20% × $6,000

= $1,200