choyontareq
choyontareq
23.12.2019 • 
Mathematics

Karen and kimo are married and file a joint return. they have two children, kay and tu, that live at home and whom they fully support. kay is 6 and tu is 8 years old. karen’s mother, ellen who is totally blind, also lives with them. ellen’s only source of income is non-taxable social security benefits. karen and kimo cover 90% of ellen’s support costs. in order for karen and kimo to both work, they pay care providers to take care of ellen all day and kay and tu after school. their total care costs for the year were: ellen $14,000, kay $4,800, and tu $4,800. during the year karen earned salary of $62,000 and kimo earned salary of $59,000. the couple do not have any other gross income or deductions for agi. calculate the dollar amount of karen and kimo’s tax credit for child and dependent care expenses. show your work including all calculations.

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