factors to consider if purely from tax perspective: ) v: H. t! q, f1 ]; q- @8 a8 F' C : j0 w+ |# H' \9 p/ A9 Xtotal additional income ! i0 s9 A) b1 ^, a' t, q/ X# F0 Y+ w7 Q3 S
total taxes paid (assume it's not a cash job) * A3 ^& z# c+ b @total tax credit transferrable to working spouse" }9 Z o8 w* \0 D) f4 f% O. u9 v
total tax credit for child day care5 a7 h x" c3 A0 i. j3 o0 {6 |
total day care cost" x8 T7 L- E; D% d
) k) a! j6 f" {8 M' }so the formula is:) H! s$ p$ z0 w" D* F
+ V$ G' S* w8 q1 n8 V# Atotal 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.