What factors should mary consider in making his decision

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Problem

Provide supplemental information and calculations.

1. Susan Beale is a single mother with two children ages three and six. She pays a total of $7,000 each year to a neighbor to care for her children while she works. Her employer reimburses $4,000 of this amount. Before considering the child care payments and reimbursement, her adjusted gross income is $44,000, and her taxable income is $36,000. Assuming that Susan files as a head of household, how should she report the child care payments and any allowable child care credit?

2. Mary Giles participates in a flexible spending account (FSA) arrangement with her employer. She has a choice of receiving $2,000 of child care assistance of $2,000 of health cost reimbursements. Mary's adjusted gross income is approximately $80,000. What factors should Mary consider in making his decision?

Reference no: EM131786473

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