Rose and Steve are a married couple with two qualifying children.Lily is a 15-year-old high school student,and Sam is a 21-year-old college student.The couple reports AGI of $165,000.The couple is entitled to child and dependent credits of
A)$2,000.
B)$4,000.
C)$1,000.
D)$2,500.

Question

Quizplus · Accepted Answer

The couple can claim a child tax credit of $2,000 for their qualifying child Lily, and a dependent care credit for expenses related to caring for Sam (up to $3,000 for one dependent or $6,000 for two or more dependents). Therefore, the total child and dependent care credit they are entitled to is $2,000 + $500 (20% of maximum $2,500 for one dependent) = $2,500.

Rose and Steve Are a Married Couple with Two Qualifying