Prior to the effect of the tax credits,Justin's regular income tax liability is $200,000.and his tentative minimum tax is $195,000.Justin reports the following credits.
Child tax credit
$1,000
Adoption expenses credit
5,000

Calculate Justin's tax liability after credits.
A)$190,000
B)$194,000
C)$195,000
D)$200,000

Question

Prior to the effect of the tax credits,Justin's regular income tax liability is $200,000.and his tentative minimum tax is $195,000.Justin reports the following credits.
Child tax credit
$1,000
Adoption expenses credit
5,000
​
Calculate Justin's tax liability after credits.
A)$190,000
B)$194,000
C)$195,000
D)$200,000

Quizplus · Accepted Answer

The child tax credit and adoption expenses credit can both be used to reduce Justin's regular income tax liability. Therefore, his tax liability after credits would be $200,000 - $1,000 - $5,000 = $194,000.

Prior to the Effect of the Tax Credits,Justin's Regular Income