Robert and Mary file a joint tax return for 2008, with adjusted gross income of $33,000. Robert and Mary earned income of $20,000 and $12,000 respectively, during 2008. In order for Mary to be gainfully employed, they pay the following child care expenses for their 4-year-old son, John:
Union Day Care Center $1,500
Wilma, baby sitter (Robert's mother) 1,000
What is the amount of the child and dependent care credit they should report on their tax return for 2008?
a. $390
b. $260
c. $650
d. $625
e. None of the above