factors to consider if purely from tax perspective:% W5 D7 @6 ~$ B4 ]' c4 [& L/ ?4 e
2 d, e- i( t8 j1 T; P$ |
total additional income 9 x" f' t; ^4 F% L/ g% J, Ltotal taxes paid (assume it's not a cash job) 6 [" r- ~: _- m8 @6 _0 ztotal tax credit transferrable to working spouse . |( G, V4 S* o; h7 `total tax credit for child day care : x6 A% q& F2 h5 Ntotal day care cost * O0 u5 [3 ^7 ^& \0 s" |! H+ @0 f; y! f* n* \3 C; J( j5 }
so the formula is: . Z/ X. i- r8 e- i* |; s( ?7 Q& ]5 \* b) f9 p& E0 C0 L
total additional income - total tax paid - total transferrable tax credit to working spouse (this can be claimed if one of the spouses has 0 or very little annual income) - total child day care tax credit =/</> total cost of day care.