Denise (SSN 182-90-0113) and Marcus Anders claim their two children, David (SSN 392-40-7417, age 7) and Stacy (SSN 813-20-4444, age 11) as dependents. During the year, Denise worked full-time and earned $38,200. Marcus was a full-time student at the local college for 9 months during the year. The Anders paid Tanya McCully (SSN 921-44-0122) $5,500 for qualified childcare expenses that allowed Denise to work and Marcus to attend college. Tanya lives at 130 N. Main Street, Unit B, Memphis, TN 37501.
a. Compute the Ander’s child and dependent care credit if their AGI is $38,710.
b. How, if at all, would your answer for Part a. change if Marcus attended college full-time for five months duering the spring semester, but only took classes part-time in the fall?
c. Prepare Form 2441 for the Anders Part b. The Anders’s tax liability limit is $1,013.