1a. Clarita is a single taxpayer with two dependent children, ages 10 and 12. Clarita pays $3,000 in qualified child care expenses during the year. If her adjusted gross income (all from wages) for the year is $18,500, calculate Clarita's child and dependent care credit for 2016. (Use Table 6.1 below).
1b. Martha has a 3-year-old child and pays $10,000 a year in day care costs. Her salary is $45,000. How much is her child and dependent care credit? (Use Table 6.1 below, but be aware of maximum qualified expense).
1c. Susan is a single taxpayer, 26 years of age, with AGI of $28,000 and no tax-exempt income. She did not have minimum essential coverage for 9 months in 2016. Compute Susan's individual shared responsibility payment for 2016. Note: for 2016, the flat ANNUAL dollar amount is $695 per adult and $347.50 per child, limited to an annual maximum of $2,085 per household.
TABLE 6.1
Adjusted Gross Income
Over/Not Over/%
0 -15000-35%
15000-17000 34%
17000-19000-33%
19000-21000-32%
21000-23000-31%
23000-25000-30%
25000-27000-29%
27000-29000-28%
29000-31000-27%
31000-33000-26%
33000-35000-25%
35000-37000-24%
37000-39000-23%
39000-41000-22%
41000-43000-21%
43000-No Limit-20%