Dong and Chen are a married couple with three dependent children under the age of 17. Their adjusted gross income is $ 282 comma 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 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 2020 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 and the child tax credit for the 2020 tax year, we will break down the problem step by step, starting with the standard deduction.

### Part 1: Standard Deduction

For the 2020 tax year, the standard deduction for **married filing jointly** is:
- $24,800.

### Part 2: Child Tax Credit Calculation

For 2020, the child tax credit per child is **$2,000**, and they have 3 dependent children under 17. However, the child tax credit starts to phase out when the adjusted gross income (AGI) exceeds $400,000 for married couples filing jointly. Dong and Chen's AGI is below this limit, so no phaseout applies.

Their total child tax credit is:
\[
\text{Child Tax Credit} = 3 \times 2,000 = 6,000
\]

### Part 3: Tax Calculation

Next, let's calculate their taxable income:

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

Now, we apply the **2020 tax brackets** for married couples filing jointly:

1. **10%** on the first $19,750 = \[0.10 \times 19,750 = 1,975\]
2. **12%** on income from $19,751 to $80,250 = \[0.12 \times (80,250 - 19,750) = 7,260\]
3. **22%** on income from $80,251 to $171,050 = \[0.22 \times (171,050 - 80,250) = 19,998\]
4. **24%** on income from $171,051 to $257,700 = \[0.24 \times (257,700 - 171,050) = 20,746.80\]

Total tax before credits:

\[
1,975 + 7,260 + 19,998 + 20,746.80 = 49,979.80
\]

### Part 4: Final Tax Calculation

Finally, subtract the child tax credit from the total tax:

\[
\text{Total Tax} = 49,979.80 - 6,000 = 43,979.80
\]

### Summary
- **Standard Deduction**: $24,800
- **Child Tax Credit**: $6,000
- **Total Tax**: $43,979.80

Would you like more details on any step or further explanation?

---

Here are 5 related questions for further exploration:
1. How does the child tax credit phase-out work for higher incomes?
2. What are the tax rates for other filing statuses in 2020?
3. How does the additional child tax credit work?
4. Can Dong and Chen benefit from any other credits or deductions?
5. What are the main differences between standard and itemized deductions?

**Tip:** Understanding how tax brackets work can help you better estimate your taxes in future years. You only pay the higher rate on the income in that bracket, not on your total income.

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 spouse and that all of their income is taxable and the amount does not include any dividends or capital gains.

Calculate Dong and Chen's 2020 tax with an adjusted gross income of $282,500. Learn how to apply the standard deduction, child tax credit, and tax brackets to determine their total tax. This example covers core tax calculation concepts suitable for Grades 11-12.

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