factors to consider if purely from tax perspective: 7 N b d, u% c! v2 e2 }& ?% ` ( }4 f1 M4 b3 V @# q. n. Ytotal additional income ! I8 P+ t' q! X$ ]1 F- Q" \, A. V% Ytotal taxes paid (assume it's not a cash job) 3 I! T+ G! O* d M+ z1 s6 C$ vtotal tax credit transferrable to working spouse+ b7 _+ L5 s/ l- t6 a3 }
total tax credit for child day care $ b0 C3 q, D# ~- Z/ q7 Etotal day care cost- p6 Y5 \% v+ u& E1 b
4 X2 ]3 H& l8 M. J3 T
so the formula is:# q& M5 G/ [4 }( v' i8 A) H# M* y
- O; f. f' n. a- B# m8 A: Ftotal 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.