Problem 6: Tax Credits Ted and Julia Higgins are married for all of 2023 with an AGI of $175,000 which includes $25,000 of earned income for Ted and $100,000 of earned income for Julie. Their taxable income is 145,000 and tax liability is $20,000. They have two children, Bryan and Sophia, who meet all of the requirements of a qualifying child for 2023. Bryan is 12 and attends high school full time. The Higgins spend $10,000 during 2023 on child care for Bryan. Sophia is a full-time student in her junior year at UCR. The Higgins spend $6,000 on tuition, books and other course materials for Sophia during 2023. Required: What is the total amount of tax credits that the Higgins' can report on their tax return?

Problem 6: Tax Credits Ted and Julia Higgins are married for all of 2023 with an AGI of $175,000 which includes $25,000 of earned income for Ted and $100,000 of earned income for Julie. Their taxable income is 145,000 and tax liability is $20,000. They have two children, Bryan and Sophia, who meet all of the requirements of a qualifying child for 2023. Bryan is 12 and attends high school full time. The Higgins spend $10,000 during 2023 on child care for Bryan. Sophia is a full-time student in her junior year at UCR. The Higgins spend $6,000 on tuition, books and other course materials for Sophia during 2023. Required: What is the total amount of tax credits that the Higgins' can report on their tax return?

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter7: Tax Credits

Section: Chapter Questions

Problem 9P

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