AutoSave Off Exemption Tax Credit Trade-off (1) - Word Search 0 X File Home Insert Draw Design Layout References Mailings Review View Help Share Comments X --- EL Times New Roma 12 A A A A BI Uvab x, x? ADA Find Sc Replace Select AaBbCI AaBbCd AaBbci AaBbccc 1 Normal 1 No Spac... Heading 1 Heading 2 Paste Dictate Sensitivity Editor Reuse Files Reuse Files Clipboard Font Paragraph Styles Editing Voice Sensitivity Editor 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 was $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 (an additional $1,000 for each child). 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 17? 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 rate Tax owed Taxable income bracket t. 10 zrn 100 / LIIII..... Page 1 of 1 247 words Focus D3 . 100% Type here to search a 86F 6:54 PM 7/16/2021