Sandra and Nick, married taxpayers filing a joint return, have $180,000 in taxable income in 2019. They have 3 children
Sandra and Nick, married taxpayers filing a joint return, have $180,000 in taxable income in 2019. They have 3 children (ages 6 through 11) who have no income that is taxable. If they can legally shift $2,000 in taxable income to each child, how much does the family save in taxes?
For the 2019 the standard deduction for married filing jointly is $ 24,400.
Due to rising cost of living it is difficult to maintain the child or children. Considering this genuine difficulty , IRS provided Tax Credit per child which is $ 2000 per child in USA for 2019. This tax credit is deducted from tax liability of the tax ayers and not from their taxable income which helps them to save considrable amount of tax.
So legally taxpayers cam shift $ 2000 per child as tax credit and can reduce their tax by $ 2000 per child they have as under ---
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