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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?


Definitions:

Reconstituted Families

Families that are formed by bringing together the children of previous marriages or relationships.

Highly Involved Relatives

Family members who actively participate or engage significantly in the care, support, or affairs of their loved ones, showing a deep commitment to their wellbeing.

Family Structure

The composition and organization of a family, including the relationships and roles within the household.

Emotional Support

Emotional support involves providing empathy, love, and encouragement to someone, helping boost their emotional well-being during times of stress or difficulty.

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