Child and Dependent Care Credit
Response to the following problem:
Todd and Jo Mendin pay their 17-year-old daughter, Erin, $5,000 to look after their 10-year-old son, TJ. The Mendins file a joint return and claim Erin and TJ as their dependents. The Mendlins' AGI is $84,000. Both spouses work and each has wages in excess of $30,000
a. Compute the Mendlins' child and dependent care credit.
b. How, if at all, would your answer to Part a. change if Erin were 22-years-old, but still claimed as a dependent on her parents' return?
c. How, if at all, would your answer to Part a. change if the Mendins paid Todd's mother to look after TJ