Sam and Megan Are Married with Two Dependent Children

question 15

Essay

Sam and Megan are married with two dependent children.Both Sam and Megan work,earning $50,000 and $55,000,respectively.Their AGI totals $110,000.They incur $6,500 of qualifying child care expenses of which $2,500 is reimbursed by Megan's dependent care program at work.
What is the amount of their child and dependent care credit?

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Definitions:

Authenticated Record

A document verified as genuine, usually through a process that confirms its origin and integrity.

Collateral

Collateral refers to assets that a borrower offers to a lender as security for a loan, which can be seized if the loan is not repaid according to the terms of the loan agreement.

Security Agreement

A legal document that grants a creditor a security interest in an asset or property as collateral for a loan, typically detailed in personal property.

Perfect

In legal and financial contexts, to make a claim or interest valid and enforceable against third parties.