Business Administration - Financial Planning RFC122 Lecture Notes - Lecture 2: Child Care, Child Support, Glasses
11 Dec 2016
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14sep2016 - class #2 tax planning (chapter 2) Pg 17,18 who will get personal income (credit) Common law = if you stay together for 12 months. Child care under age 1 - 6 = ,000 yearly. Child care ages 7-16 = ,000 yearly. **spouse with lower income can make the deductions for child care because it is lower money than someone with higher income** Expenses = day care/babysitting, day camps, boarding school. Total deduction amount = no more than (cid:1152) of the money you are making from low income spouse. Family cut credit = total difference between both income earners divided by 2 with a maximum of ,000. Example: mary ,000/year - adam has ,000/year = ,000/2 = ,000. It is above ,000 so you add ,000 to the low income earner = 28,000 + 50 = ,000 and mary ,000 - ,000 = ,000. Maximum you can claim is ,000 for family cut credit.
