The amount of child care expenses that can be used to calculate the refundable Child and Dependent Care Credit depends on several factors, including the total amount of child care expenses paid, the income of the taxpayer, and the number of qualifying dependents.
For tax year 2022, the maximum amount of expenses that can be used to calculate the credit is $8,000 for one qualifying dependent and $16,000 for two or more qualifying dependents. However, this maximum amount is reduced based on the taxpayer's income.
Additionally, the percentage of expenses that can be claimed for the credit is generally between 20% and 35% of the qualifying expenses, depending on the taxpayer's income.
Therefore, the specific amount of child care expenses paid to Busy Bee Day Care that can be used to calculate the refundable Child and Dependent Care Credit will depend on the taxpayer's individual circumstances. It is recommended to consult a tax professional or use tax software to determine the exact amount of the credit.