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1. What is the net tax benefif for every child under 17? 2. How many children under the age of 17 will create a breakeven

1. What is the net tax benefif for every child under 17?
2. How many children under the age of 17 will create a breakeven tax responsibility?
3. Assume a family of 4, with 2 children under the age of 17. What marginal tax rate creates a breakeven result? What does this mean?
4. Did this change in fhe tax law reduce or increase taxes for most familes?
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Effective 2019, the Personal Exemption Allowance was eliminated. In the same year, the Child Tax Credit doubled from $1,000 to $2,000 per child. The Personal Exemption Allowance 2was $4,150 for each exemption. So, a family of 4 (2 adults and 2 children) could claim an exemption of $16,600. If the 2 children are under 17, the family loses the exemption (deduction) but recognizes an additional $2,000 in tax credits Assume a Personal Exemption Allowance of $4,150 per individual Assume a 22% marginal tax rate. Q: What is the net tax benefit for every child under 172 Q: How many children under the age of 17 will create a break-even tax responsibility? Q: Assume a family of 4, with 2 children under 17. What marginal tax rate creates a break-even result? What does this mean? Q: Did this change in the tax law reduce or increase taxes for most families? Tax Taxable income rate bracket Tax owed 10% $0 to $19,750 10% of taxable income $1,975 plus 12% of the amount over 12% $19,751 to $80,250 $19,750 $80,251 to $9,235 plus 22% of the amount over 22% $ 171,050 $80,250 $171,051 to $29,211 plus 24% of the amount over 24% $326,600 $171,050 $326,601 to $66,543 plus 32% of the amount over 32% $414,700 $326,600 $414,701 to $94,735 plus 35% of the amount over 35% $622,050 $414,700 $167,307.50 plus 37% of the amount 37% $622,051 or more over $622,050

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