Question

congratulations! You now have a child!(also, you have a dependent)what is your tax liability if you file jointly now ?Identify how this changes your calculations?

Taxation practice question 4 : Please help me how to deduct dependent tax from the below problem:

You meet that special person and get married!! amazingly your spouse has exactly the same income you do. $47810. If your tax status is now "Married - filing jointly? What is your tax liability?

Your the same number from the Taxation Practice work sheet.

Answer 1

"Married - filing jointly" tax bracket are:-

Tax rate	Married, filing jointly
10%	$0 to $19,750
12%	$19,751 to $80,250
22%	$80,251 to $171,050
24%	$171,051 to $326,600
32%	$326,601 to $414,700
35%	$414,701 to $622,050
37%	$622,051 or more

Tax on income of $47810 is $5343.

i.e. on 19750 * 10% =1975

on balance = 28060* 12% = 3368

Total tax = $5343

The child tax credit was raised from $1,000 to $2,000 per child from 2018 and 2019, having qualified dependent children may also allow them to claim other important tax credits, including the earned income credit (EIC).

In this case the tax will reduce by $2000, therefore, total tax liability will be $5343-$2000= $3343