In Year 1, Sandy and Chris have adjusted gross income of $200,000. During the year, they provided more than half of the support for both of their unmarried adult children, Megna and Britt. Both children live near the colleges they are attending. Megna is a 25-year-old full-time graduate student with no earned income. Britt is a 22-year-old part-time student with $15,000 earned income from a part-time job. What is the total amount of child tax credit (including credit for other dependents), if any, that Sandy and Chris can claim on their Year 1 joint income tax return

$1,000

Explanation:

Even though Megna and Britt are above the age of 17 and as such do not qualify for the child tax credit, they qualify for the Credit for Other Dependants.

Under this Credit, $500 can be deducted per dependant if certain conditions are fulfilled such as the dependents having a valid American identity number such as ATIN, ITIN, or SSN.

The dependants have to be your children or elderly parents.

With $500 in credit available per dependant and Sandy and Chris having 2 dependants in Megna and Britt, they can get a credit of $1,000 for the both of them.

answer; break-even analysis;