Question

Mai and Chuck have been divorced since 2012. They have three boys, ages 6, 8, and 10. All of the boys live with Mai and she receives child support from Chuck. Mai and Chuck both work and the boys need child care before and after school. Te boys attend The Fun House Day Care Center and Mai paid them $2,000 and Chuck paid them $3,000. Mai's AGI is $18,000 and Chuck's is $29,000. Mai will claim two of the boys as dependents. She signed Form 8332 which allows Chuck to claim one of the boys. Who can take the child and dependent care credit?

Answer 1

Both Mai and Chuck can take the child and dependent care credit, which is worth up to $3,000 per child. Mai's tax credit = $2,000, while Chuck's tax credit = $3,000

Step-by-step explanation:

The child and dependent care credit is used to deduct child care expenses. In order to qualify for the child and dependent care credit you must:

• the taxpayer must have earned income
• the child must be 12 years or younger
• you must provide the care provider’s name, address and taxpayer identification number (or social security number)