Discuss the below:
Q: The IRS presents the tax rates to individual taxpayers in the form of Tax Rate Schedules and a Tax Table. Taxpayers who use the Tax Table to compute their tax will find that for an equal amount of taxable income their tax will always:
Which of the following credits may be carried over if not entirely utilized in the current year?
a. Child tax credit
b. Child and dependent care credit
c. Adoption credit
d. Earned income credit
e. Premium tax credit
During the year, a married couple pays $3,500 in qualified child care expenses to a nanny to look after their 8-year-old son. The husband works and has $56,000 of wages during the year; the wife attended college full-time student for 10 months of the year. Based on the couple's AGI, the percentage they can use to compute their child and dependent care credit is 26%. The couple's child and dependent care credit is:
A taxpayer's earned income and AGI are both $41,800. The taxpayer's total tax liability (before any tax credits) is $1,300. The taxpayer's only tax credits are an $840 child and dependent care credit and the child tax credit for two qualifying children. The taxpayer's refundable child tax credit is: