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 ​$

24,800.00.  ​(Enter the amount to the nearest​ cent.) Click the following link for a standard deduction​ table: LOADING....
Part 2
Their taxable income for the 2020 tax year is ​$

enter your response here.  ​(Round to the nearest​ cent.)

To calculate Dong and Chen's taxable income and total tax liability, we need to follow these steps:

### Part 1: Standard Deduction
For the 2020 tax year, the standard deduction for married couples filing jointly is **$24,800.00**.

### Part 2: Taxable Income
Their **adjusted gross income (AGI)** is $282,500. To calculate their taxable income, we subtract the standard deduction from their AGI.

\[
\text{Taxable Income} = \text{AGI} - \text{Standard Deduction}
\]

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

### Part 3: Tax Brackets (2020 for Married Filing Jointly)
For the 2020 tax year, the tax brackets for married filing jointly are:

- 10% on income up to $19,750
- 12% on income over $19,750 and up to $80,250
- 22% on income over $80,250 and up to $171,050
- 24% on income over $171,050 and up to $326,600

We'll calculate their tax based on these brackets.

1. **First $19,750** taxed at 10%:
   \[
   19,750 \times 0.10 = 1,975
   \]

2. **From $19,750 to $80,250** taxed at 12%:
   \[
   (80,250 - 19,750) \times 0.12 = 60,500 \times 0.12 = 7,260
   \]

3. **From $80,250 to $171,050** taxed at 22%:
   \[
   (171,050 - 80,250) \times 0.22 = 90,800 \times 0.22 = 19,976
   \]

4. **From $171,050 to $257,700** taxed at 24%:
   \[
   (257,700 - 171,050) \times 0.24 = 86,650 \times 0.24 = 20,796
   \]

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

### Part 4: Child Tax Credit
The **Child Tax Credit** for 2020 is $2,000 per qualifying child, but it starts phasing out when AGI exceeds $400,000 for married filing jointly. Since their AGI is below $400,000, they qualify for the full child tax credit:

\[
\text{Child Tax Credit} = 3 \times 2,000 = 6,000
\]

### Part 5: Final Tax Calculation
The final tax after applying the child tax credit:

\[
\text{Final Tax} = 50,007 - 6,000 = 44,007
\]

### Summary:
- **Taxable Income**: $257,700
- **Total Tax Before Credits**: $50,007
- **Child Tax Credit**: $6,000
- **Total Tax After Credits**: $44,007

Would you like more details or have any questions?

Here are some related questions:
1. How does the child tax credit phase out work for higher incomes?
2. What other tax credits can a married couple with children claim?
3. How does the standard deduction compare to itemizing deductions?
4. What are the tax implications of having dividend income?
5. How does taxable income differ from AGI?

**Tip:** Always check if you qualify for additional tax credits like the Earned Income Credit, which can further reduce your tax liability.

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 taxable income and total tax liability for Dong and Chen, a married couple with three dependent children and an adjusted gross income of $282,500. This problem covers tax brackets, standard deduction, and child tax credits for 2020. Suitable for adult learners and those looking to understand tax-related calculations.

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