Robert and Mary Jason, filing a joint tax return for 2007, had a tax liability of $9,000 based on their tax table income and three exemptions. Robert and Mary had earned income of $30,000 and $22,000, respectively, during 2007. In order for Mary to be gainfully employed, the Jasons incurred the following employment-related expenses for their four-year-old son John in 2007:
|
Payee |
Amount |
|
Union Day Care Center |
$2,500 |
|
Acme Home Cleaning Service |
500 |
|
Wilma Jason, babysitter (Robert Jason’s mother) |
1,000 |
Assuming that the Jasons do not claim any other credits against their tax, what is the amount of the child care tax credit they should report on their tax return for 2007?
- $ 500
- $ 600
- $ 700
- $1,050