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Tim (40) and Tina (42) live in California. They have two dependent children, Todd (age 3 ) and Ted (age 17). Tim and Tina pay
Tim (40) and Tina (42) live in California. They have two dependent children, Todd (age 3 ) and Ted (age 17). Tim and Tina pay $18,000/ year for child care expenses for Todd so that they can both work. In addition, Tim and Tina support Tim's brother, Bob. Bob is a dependent (qualifying relative) of Tim and Tina for tax purposes. What is the amount of Tim and Tina's 2022 child tax credit (including other dependent tax credit)? Assume that Tim and Tina's AGI is below any phaseout threshold. What is the amount of Tim and Tina's 2022 child and dependent care expenses tax credit? Assume that their income places their credit percentage at 20%. Betty is an aspiring CPA. In 2022, she finished her last semester at San Diego State, where she graduated with an undergraduate degree in accounting. Betty was a full-time student and paid $3,250 in tuition and to San Diego State in 2022 and paid $250 for required textbooks. Betty already claimed the American Opportunity Tax Credit in 2019,2020 and 2021. Betty's husband, Barry, is a nurse. He is also pursuing his Masters in Nursing at University of San Diego. In 2022, he spent $8,000 on tuition for his graduate program. Barry also paid $500 for required textbooks. The tuition and books were not reimbursed by Barry's employer. Betty and Barry will file a joint tax return for 2022 , and neither can be claimed as a dependent on anyone else's tax return. Their modified AGI is below the phaseout threshold for both the American Opportunity Tax Credit and Lifetime Learning Credit. What is the maximum amount of education tax credits that Betty and Barry can claim on their 2022 tax return
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