Question

Calculate the total child and other dependent credit for the following taxpayers.

Round any division "up" to the nearest whole number.

b. Jerry and Ann have $100,000 of AGI, file jointly, and claim two dependent preschool children:
$

c. James and Apple have AGI of $417,100, file jointly, and claim three dependent children (ages 7, 10, and 19):
$

Answer 1

b) Since Jerry & Ann have preschool children not over the age of 17 they can claim an amount of $2000 per child ($4000) to be deducted from their AGI.

c) James and Apple can deduct $4000 from their AGI for the 2 children aged 7 & 10. For the other child the deduction is reduced by 5% of AGI over $400000 (Married couples) which brings the amount to $855 (($417100-$400000)*5%). The total deduction for the 3rd child is $2000-$855 = $1145

Total deduction is $4000+1145 = $5145.