The following is a listing of tax considerations for a family. How much is the their taxable income?

Question

Quizplus · Accepted Answer

To calculate taxable income, we need to subtract the total deductions from total income. From the given information:
- Total income: $33,000
- Deductions (standard for married filing jointly): $5,700
- Deductions for 2 dependents (assuming they meet the requirements): $2,000 x 2 = $4,000
Taxable income = $33,000 - ($5,700 + $4,000) = $23,300
However, there is an additional child tax credit of $6,000 (assuming they meet the requirements), which reduces the taxable income further to $23,300 - $6,000 = $17,300. 
But the child tax credit can only reduce taxes owed to $0, so the remaining amount of the credit is not refundable. This means that the family's taxable income can't be reduced below $17,300, and they will owe tax on at least that amount. 
Therefore, the taxable income for this family is $27,300 (the sum of $17,300 and the non-refundable child tax credit of $6,000). Choice C is the correct answer.

The Following Is a Listing of Tax Considerations for a Family