Kaelyn's Mother, Judy, Looks After Kaelyn's Four-Year-Old Twins So Kaelyn

question 7

Multiple Choice

Kaelyn's mother, Judy, looks after Kaelyn's four-year-old twins so Kaelyn can go to work (she drops off and picks up the twins from Judy's home every day) . Since Judy is a relative, Kaelyn made sure, for tax purposes, to pay her mother the going rate for child care ($6,300 for the year) . What is the amount of Kaelyn's child and dependent care credit if her AGI for the year was $36,000?

• A) $1,440
• B) $2,100
• C) $6,000
• D) $0

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Definitions:

Owner

An Owner is the individual or entity that legally holds the rights to possess, use, and dispose of property, assets, or a business.