Mr. and Mrs. Dandy have three children, ages 3, 11, and 15 at the end of the current year. All three Not yet children enjoy good mental and physical health. Mr. Dandy earns employment income of $12,000
answered while Mrs. Dandy has a business income of $90 0,000.
Marked out of
5.00 The child care costs for the current year, all paid for by cheque and properly documented for tax
purposes total $12,500.
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Required: Prepare a brief memo to your client outlining the following:
1. Advise who should claim the childcare expense deduction. Mrs. Dandy insists she should claim it due to the higher income. Explain your rationale.
2. Summarize the maximum childcare expense deduction for the applicable taxation year. Show all your calculations. Mrs. Dandy wants to review v it before signing off.