Jessica and Robert have two young children. They have $7,000 of qualified child care expenses and an AGI of $22,000 in 2019. What is their allowable child and dependent care credit?

$1,860

Step-by-step explanation:

The 20%-35% from up to $6,000 of expenses paid for two or more Qualifying Persons. The percentage falls by 1% for every additional $2,000 of income until it reaches 20%.

22,000+7,000-6,000-15,000=8000/2000= 4%

35%-4%= 31%

31% × $6,000, the maximum qualified child care.

$1,860

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