Dong and Chen are a married couple with 

threethree 

dependent children under the age of 17. Their adjusted gross income is 

$ 282 comma 500.00$282,500.00​, 

and they plan to take the standard deduction. Calculate their total tax as well as the child tax credit that they can claim for the 

20202020 

tax year. Assume that their filing status is married filing jointly spouse and that all of their income is taxable and the amount does not include any dividends or capital gains.

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Part 1

Dong and​ Chen's standard deduction for the 

20202020 

tax year is 

​$enter your response here. 

** ​(Enter the amount to the nearest​ cent.)** Click the following link for a standard deduction​ table: 

LOADING...

.

Let's break down the problem and compute Dong and Chen's total tax and child tax credit for the 2020 tax year, using the following details:

### Given Information:
1. **Adjusted Gross Income (AGI):** $282,500
2. **Filing Status:** Married filing jointly
3. **Number of dependent children under 17:** 3
4. **No dividends or capital gains included**
5. **Standard deduction for the year 2020:** (We will calculate this)
6. **Child Tax Credit per child under 17 in 2020:** Up to $2,000 per child

### Step 1: Calculate the Standard Deduction
For 2020, the standard deduction for married couples filing jointly is **$24,800**. So:

\[
\text{Standard Deduction} = 24,800
\]

### Step 2: Calculate Taxable Income
Taxable income is calculated by subtracting the standard deduction from the adjusted gross income (AGI).

\[
\text{Taxable Income} = 282,500 - 24,800 = 257,700
\]

### Step 3: Determine Total Tax
Now, let's apply the 2020 tax brackets for married couples filing jointly:

- **10%** on the first $19,750
- **12%** on income from $19,751 to $80,250
- **22%** on income from $80,251 to $171,050
- **24%** on income from $171,051 to $326,600

Using these brackets, the total tax can be calculated as follows:

1. **10% on first $19,750:**
   \[
   19,750 \times 0.10 = 1,975
   \]

2. **12% on the next portion ($19,751 to $80,250 = $60,500):**
   \[
   60,500 \times 0.12 = 7,260
   \]

3. **22% on the next portion ($80,251 to $171,050 = $90,800):**
   \[
   90,800 \times 0.22 = 19,976
   \]

4. **24% on the remaining portion ($171,051 to $257,700 = $86,650):**
   \[
   86,650 \times 0.24 = 20,796
   \]

Adding all these, the total tax before credits is:

\[
1,975 + 7,260 + 19,976 + 20,796 = 50,007
\]

### Step 4: Calculate the Child Tax Credit
The child tax credit is up to **$2,000 per child** for dependent children under 17. However, this credit begins to phase out if the AGI exceeds $400,000 for married filing jointly, which is not the case here.

For 3 children, the total child tax credit is:

\[
3 \times 2,000 = 6,000
\]

### Step 5: Calculate the Total Tax After Credits
Finally, we subtract the child tax credit from the total tax:

\[
50,007 - 6,000 = 44,007
\]

### Final Answer:
- **Total Tax Before Credits:** $50,007
- **Child Tax Credit:** $6,000
- **Total Tax After Credits:** $44,007

Would you like further details or clarification?

Here are five related questions:
1. How does the child tax credit phase-out work for higher incomes?
2. What is the difference between standard deduction and itemized deductions?
3. How are other common deductions applied in tax returns?
4. How do capital gains and dividends affect taxable income?
5. What are the tax implications of other types of credits (e.g., education credits)?

**Tip:** Always check the latest tax brackets and rules, as they may change annually.

Dong and Chen are a married couple with three dependent children under the age of 17. Their adjusted gross income is $282,500.00, and they plan to take the standard deduction. Calculate their total tax as well as the child tax credit that they can claim for the 2020 tax year. Assume that their filing status is married filing jointly and that all of their income is taxable, and the amount does not include any dividends or capital gains.

Learn how to calculate the total tax and child tax credit for Dong and Chen, a married couple with three dependent children and an adjusted gross income of $282,500 for the 2020 tax year. This step-by-step guide covers key tax concepts like standard deduction, tax brackets, and child tax credits for married filing jointly status.

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