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 ?