Jeff and Geri Are Married and Have AGI of $95,000

question 53

Essay

Jeff and Geri are married and have AGI of $95,000 and three young children. Geri pays $6,000 a year to day care providers so she can teach a yoga class and do household errands. Geri earns $5,000 teaching the yoga class. How much child and dependent care credit can Jeff and Geri claim? Why?

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Definitions:

Dishonored Note

A promissory note that has not been paid by the debtor at the time it is due.

Collection Efforts

Activities undertaken by a business or organization to pursue and recover funds owed by customers or clients.

Convert Receivables

The process of transforming accounts receivable (money owed to a company by its customers) into cash.

Before Due

Refers to actions or events occurring prior to a specified deadline or due date.