Enrolled Agent Exam Study Group
“If married at end of year, the smaller of taxpayer or a spouse’s earned income for the year”
It is correct, If married at the end of year, then the expense we used to compare is the expense limit and the smaller of taxpayer or a spouse’s earned income for the year. For example, Mike, a single, his earned income is 30000 in 2019, and he has a kid, whose daycare expense is 5000 in 2019. And Mike married with Andy, whose earned income is only 2000 in 2019. So the expense for us to calculate the credit is 2000, not 3000.