H and W are married and have a 15-year-old daughter who lives with them the entire taxable year.The couple's marginal tax rate for federal tax purposes is 35 percent.What amount will their daughter save them in taxes?
A)$1,330
B)$3,800
C)$0
D)$950
E)None of the above

Question

Quizplus · Accepted Answer

The child tax credit is $2,000 per qualifying child. The couple's marginal tax rate is 35%, so the child tax credit will save them $2,000 x 0.35 = $700 in taxes. The additional child tax credit is $1,000 per qualifying child, so the couple will save an additional $1,000 x 0.35 = $350 in taxes. Therefore, the total amount that their daughter will save them in taxes is $700 + $350 = $1,050.

H and W Are Married and Have a 15-Year-Old Daughter