### Child Tax Credit Calculation ExampleTrey has two dependents, his daughters, ages 14 and 18, at year-end. Trey files a joint return with his wife.**Scenario**: What amount of child tax credit (either as a child or a qualifying dependent) will Trey be able to claim in 2021 for his daughters under each of the following alternative situations? Use Exhibit 8-8.#### Situation c:- **Adjusted Gross Income (AGI):** $424,800- **Ages of Daughters:** 10 and 12**To Determine:**- **Amount of child tax credit:** [Input Box]---This example illustrates a scenario where you need to find the potential child tax credit eligibility based on age and income. For accurate calculation, refer to Exhibit 8-8, which typically includes thresholds and phase-out ranges for the tax credit. **Child Tax Credit Phase-Out Threshold**The table below outlines the income thresholds at which the Child Tax Credit begins to phase out based on different tax filing statuses:| **Filing Status** | **Phase-Out Threshold** ||-----------------------------------|------------------------|| Married filing jointly | $400,000 || Married filing separately | $200,000 || Head of household and single | $200,000 |**Explanation:**- The "Phase-Out Threshold" indicates the income level at which the Child Tax Credit starts to decrease.- For those filing as "Married filing jointly," the phase-out begins at an income of $400,000.- For "Married filing separately," "Head of household," and "Single" filers, the phase-out starts at $200,000.

It is subject to phase outs when Married filing Jointly Adjusted Gross Income > $ 400,000 /- by…

Answered: Trey has two dependents, his daughters,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Matt and Kate have an AGI of $200,000 and they file married filing jointly and claim two dependent children whose ages are 6 and 17 and a dependent parent. What is the amount of the total child and other dependent credit for them on their 2020 tax return?
Mr. & Mrs Grnager both work full time. They have three children ages 16, 6, and 3. In 2021, the Grangers' paid $13,750 of qualifying expenses for child care for their two youngest children. For purposes of claiming the Child and dependent Car credit, how much of their qualifying expenses can they consider?
Allie and Buddy are married, file a joint return, and have one son, Zack, age 5. Buddy has earned income of $48,000, and Allie was a full-time student for nine months (with no income). They paid a qualified child care center $3,450. How much is Allie and Buddy's child and dependent care credit for the year? (tax year 2021) Use Child and Dependent Care Credit AGI schedule. Multiple Choice SO. $1,125. $1,725. $3,450.
Robert and Maisie have one child, Gillie (4). Both parents work full time, and their AGI in 2020 was $194,375. During the year, they paid $8,140 in childcare expenses for Gillie. Robert's employer has decided to offer a daycare flexible spending account (FSA) option for 2021. What would you recommend, and why? I n the end, either option is a good choice because they both reduce their tax. They can claim $5,000 on the FSA and then claim the remaining $3,140 against the Child and Dependent Care Credit. Therefore, Robert should open the FSA. Because their marginal tax rate + FICA tax is more than the Child and Dependent Care Credit percentage they would receive, the FSA is a better option. Robert should not open the FSA; since he would only be able to fund up to $5,000, it wouldn't cover all their expenses.
Paola and Isidora are married; file a joint tax return; report modified AGI of $146,675; and have one dependent child, Dante. The couple paid $13,590 of tuition and $9,930 for room and board for Dante (a freshman). Dante is a full-time student and claimed as a dependent by Paola and Isidora. Determine the amount of the American Opportunity credit for the year.
Elizabeth has three children ages 10, 17, and 19. All the children live with her, are full-time students, and claimed as dependents on her tax return. Elizabeth's AGI is $100,000 in 2023 and she files head of household. Her tax liability before the application of any credits is $8,400. What is the maximum Child Tax Credit she can claim on her 2023 tax return? $4.000 O $6,000 $2,000 $0
2A
This year Diane intends to file a married-joint return. Diane received $189,500 of salary and paid $7,050 of interest on loans used to pay qualified tuition costs for her dependent daughter, Deb. This year Diane has also paid moving expenses of $7,400 and $29,300 of alimony to her ex-spouse, Jack, who she divorced in 2013. What is Diane's adjusted gross income
Conner and Matsuko paid $1,000 and $2,000, in qualifying expenses for their two sons, Jason and Justin, respectively, to attend Idaho State University. Jason is a sophomore and Justin is a freshman. Conner and Matsuko's AGI is $195,000. What is their allowable American opportunity tax credit? Multiple Choice $0. $3,000. $2,000. $3,700.
! Required information [The following information applies to the questions displayed below.] Trey has two dependents, his daughters, ages 14 and 18, at year-end. Trey files a joint return with his spouse. What amount of child tax credit (either as a child or a qualifying dependent) will Trey be able to claim in 2023 for his daughters under each of the following alternative situations? Use Exhibit 8-8. a. His AGI is $109,500. Amount of child tax credit
Shauna Coleman is single. She is employed as an architectural designer for Streamline Design (SD). Shauna wanted to determine her taxable income for this year (2021). She correctly calculated her AGI. However, she wasn't sure how to compute the rest of her taxable income. She provided the following information with hopes that you could use it to determine her taxable income. a. Shauna paid $4,688 for medical expenses for care related to a broken ankle. Also, Shauna's boyfriend, Blake, drove Shauna (in her car) a total of 115 miles to the doctor's office so she could receive care for her broken ankle. b. Shauna paid a total of $3,420 in health insurance premiums during the year (not through an exchange). SD did not reimburse any of this expense. Besides the health insurance premiums and the medical expenses for her broken ankle, Shauna had Lasik eye surgery last year and paid $3,020 for the surgery (she received no insurance reimbursement). She also incurred $458 of other medical…

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