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Ted and Julia Higgins are married for all of 2023 with an AGI of $140,000, Taxable Income of $100,000 and Tax Liability of $30,000.
Ted and Julia Higgins are married for all of 2023 with an AGI of $140,000, Taxable Income of $100,000 and Tax Liability of $30,000. Their income includes $20,000 of dividends Ted earned from investments in Germany. He paid $7,000 of taxes in Germany on that income. They have one child, Sophia, who is 23 and a full-time student in her junior year at UCR. She incurred $6,000 of expenses for tuition and books and $5,000 for room and board. All of her expenses were paid by scholarships. Required: What is the total amount of tax credits that the Higgins' can report on their tax return?
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