Question

Sean and Jenny are married, file a joint return and have two dependent children, Blake, age 9 and Jake, age 5. Sean has earned income of $72,000. Jenny was a full-time student (for nine months) with no income. They paid a qualified day care center $7,000. What amount of child and dependent care credit can Sean and Jenny receive?

a. $600.
b. $900.
c. $1,000.
d. $1,200.

Answer 1

$900

Step-by-step explanation:

Calculation for What amount of child and dependent care credit can both Sean and Jenny receive

Child and dependent care credit=($500 * 9 months *20 %

Child and dependent care credit=$900

Note that $500 is the standard amount while the 20% is the tax credit

Therefore the amount of child and dependent care credit can both Sean and Jenny receive will be $900