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.

Question content area bottom

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...

.

To calculate Dong and Chen's total tax for the 2020 tax year, we will break the problem into several steps. Here is the information we need:

1. **Standard Deduction**: Since Dong and Chen are married filing jointly, the standard deduction for 2020 for married filing jointly is **$24,800**.

2. **Child Tax Credit**: For the 2020 tax year, the child tax credit is up to **$2,000 per qualifying child under 17**. However, the credit begins to phase out when the adjusted gross income (AGI) exceeds **$400,000** for married couples filing jointly.

3. **Adjusted Gross Income (AGI)**: Their AGI is $282,500, which does not exceed the threshold for the child tax credit phaseout.

### Part 1: Standard Deduction
For the 2020 tax year, the standard deduction for married couples filing jointly is:
- **$24,800**

### Part 2: Taxable Income
Next, we calculate the taxable income:
\[
\text{Taxable Income} = \text{AGI} - \text{Standard Deduction}
\]
\[
\text{Taxable Income} = 282,500 - 24,800 = 257,700
\]

### Part 3: Child Tax Credit
Dong and Chen have 3 children under the age of 17, and they are eligible for the full child tax credit for each of them. Therefore, they can claim:
\[
\text{Child Tax Credit} = 3 \times 2,000 = 6,000
\]

### Part 4: Federal Income Tax Calculation (Using 2020 Tax Brackets)
The tax brackets for married couples filing jointly in 2020 are as follows:

- 10% on income up to $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

We'll calculate the tax based on their taxable income of $257,700.

1. The first $19,750 is taxed at 10%:
   \[
   19,750 \times 0.10 = 1,975
   \]

2. The income between $19,751 and $80,250 is taxed at 12%:
   \[
   (80,250 - 19,750) \times 0.12 = 60,500 \times 0.12 = 7,260
   \]

3. The income between $80,251 and $171,050 is taxed at 22%:
   \[
   (171,050 - 80,250) \times 0.22 = 90,800 \times 0.22 = 19,976
   \]

4. The income between $171,051 and $257,700 is taxed at 24%:
   \[
   (257,700 - 171,050) \times 0.24 = 86,650 \times 0.24 = 20,796
   \]

Total tax before applying the child tax credit:
\[
1,975 + 7,260 + 19,976 + 20,796 = 50,007
\]

### Part 5: Total Tax After Child Tax Credit
Finally, we subtract the child tax credit from the total tax:
\[
50,007 - 6,000 = 44,007
\]

### Final Answer:
- **Standard Deduction**: $24,800
- **Child Tax Credit**: $6,000
- **Total Tax**: $44,007

Would you like a breakdown or more details on any step?

Here are some related questions:
1. How does the phase-out of the child tax credit work?
2. What is the difference between a standard deduction and itemized deductions?
3. What are the tax brackets for different filing statuses?
4. How does the child tax credit differ from other credits like the earned income credit?
5. Can the child tax credit be refunded if the tax liability is low?

**Tip:** Always consider tax credits, as they directly reduce your tax liability, unlike deductions that reduce taxable income.

Dong and Chen are a married couple with three dependent children under the age of 17. Their adjusted gross income is $282,500, 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 a married couple with three children under the age of 17, with an AGI of $282,500 in the 2020 tax year. This step-by-step guide includes the standard deduction, child tax credit details, and federal income tax calculation using 2020 tax brackets. Suitable for high school and college students.

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