Question

If gina's agi was $33,500 and assuming that the daycare expenses are not changed and all else remains equal, how much would her child and dependent care credit be?

O $600
O $750
O $900
O $1,050

Answer 1

To calculate Gina's child and dependent care credit, we need to determine the amount of qualified expenses she has incurred. Then, we apply the appropriate credit rate based on her adjusted gross income (AGI) to calculate the credit amount.

Step-by-step explanation:

To calculate Gina's child and dependent care credit, we need to determine the amount of qualified expenses she has incurred. Assuming her daycare expenses have not changed, we then apply the appropriate credit rate based on her adjusted gross income (AGI). For taxpayers with an AGI between $15,000 and $43,000, the credit rate is between 20% and 35%, depending on their income bracket.

Since Gina's AGI is $33,500, we can assume her credit rate falls within this range.To calculate the credit amount, we multiply her daycare expenses by the credit rate. Let's say her daycare expenses amount to $2,000. If her credit rate is the minimum of 20%, her credit amount would be $400 (20% of $2,000). If her credit rate is the maximum of 35%, her credit amount would be $700 (35% of $2,000).Therefore, Gina's child and dependent care credit would be between $400 and $700, depending on her credit rate. None of the given options match this range.