Maurice and Judy (both age 32) have one natural daughter, age 4, and adopted twin boys, age 8. Their adjusted gross income on their joint return is $120,000. If they take the standard deduction, what is their tax liability after any allowable tax credits in 2017 if the child tax credit begins to phase out at $110,000?

Question

Quizplus · Accepted Answer

$120,000 - ($4,050 x 5) - $12,700 = $87,050; Tax on $87,050 = $10,452.50 + ($87,050 - $75,900) x .25 = $13,240; ($120,000 - $110,000)/$1,000 x $50 = $500; ($1,000 x 3) - $500 = $2,500; $13,240 - $2,500 = $10,740.

Maurice and Judy (Both Age 32) Have One Natural Daughter