Roy and Monica are married and will file a joint return. They have a daughter, Rachel, age 5. While Roy works and Monica looks for work, Rachel stays at Wee Care. Monica is not disabled. In 2011, they paid $1,500 for child care. Roy’s earned income was $24,000 and Monica had no earned income. What is the amount of their child and dependent care credit? A) $1,500 B) $0 C) $450 Accodiding to the answer key,the right answer is B. Please explain why? Solution The dollar limit for work-related expenses that can be used to figure the child and dependent care credit is $3,000 for one qualifying children thats why amount of their child and dependent care credit is $0 .

1. Roy and Monica are married and will file a joint return. They have a daughter, Rachel, age 5.
While Roy works and Monica looks for work, Rachel stays at Wee Care. Monica is not disabled.
In 2011, they paid $1,500 for child care. Roy’s earned income was $24,000 and Monica had
no earned income. What is the amount of their child and dependent care credit?
A) $1,500
B) $0
C) $450
Accodiding to the answer key,the right answer is B. Please explain why?
Solution
The dollar limit for work-related expenses that can be used to figure the child and dependent care
credit is $3,000 for one qualifying children thats why amount of their child and dependent care
credit is $0