Exercise 12-16 (Algorithmic) (LO. 4)

Santiago and Amy are married and file a joint tax return, claiming as dependents their three children, ages 12, 14, and 18. Their AGI is $117,000.

Santiago and Amy's child tax credit is $.

Exercise 12-17 (Algorithmic) (LO. 4)

Ivanna, who has three children under age 13, worked full-time while her husband, Sergio, was attending college for nine months during the year. Ivanna earned $50,775 and incurred $7,625 of child care expenses.

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The amount of Ivanna and Sergio's credit for child and dependent care expenses is $

Exercise 12-18 (Algorithmic) (LO. 4)

Paolo and Isadora Shaw are married, file a joint tax return, and have one dependent child, Dante. The Shaws report modified AGI of $125,375. The couple paid $6,345 of tuition and $9,270 for room and board for Dante, a fulltime first-year student at Serene College.

For 2017, Paola and Isidora may claim an American Opportunity Credit of $

Paul and Karen Kent are married, and both are employed (Paul earned $44,000 and Karen earned $9,000 this year). Paul and Karen have two dependent children, Samuel and Joy, both under the age of 13. In order to work, Paul and Karen pay $3,800 ($1,900 for each child) to Sunnyside Day Care Center (422 Sycamore Road, Ft. Worth, TX 76028; Employer Identification Number: 11-2345678), to care for their children.

Click to view Applicable Rate of Credit based on Adjusted Gross Income.

a. Assuming that Paul and Karen file a joint return, their tax credit for child and dependent care expenses for the year is $.

Exercise 12-15 (Algorithmic) (LO. 4)

In late 2016, Randy and Rachel Erwin paid $8,825 in legal fees, adoption fees, and other expenses directly related to the adoption of an infant son, Jameson. The adoption becomes final in 2017, and the Erwins then pay an additional $10,149 in adoption fees. Their 2017 AGI amounts to $172,045.

b. If the Erwins' 2017 AGI is $218,000, adoption tax credit is $. (Round any division to three decimal places and round your final answer to the nearest dollar.)