2. LO. 2 What is a refundable credit? Give examples. What is a nonrefundable credit? Give examples
42. LO. 4 Durell and Earline are married; file a joint return; and claim dependency exemptions for their two children, ages 5 years and 6 months. They also claim Earline’ s son from a previous marriage, age 18, as a dependent. Durell and Earline’ s combined AGI is $ 68,000.
43. LO. 4 Paul and Karen are married, and both are employed( Paul earns $ 44,000 and Karen earns $ 9,000 during 2014). Paul and Karen have two dependent children, both under the age of 13. So that they can work, Paul and Karen pay $ 3,800 to various unrelated parties to care for their children while they are working. Assuming that Paul and Karen file a joint return, what, if any, is their tax credit for child and dependent care expenses?