Determine the maximum amount of personal tax credits

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Question - Marion Lassiter has Net Income For Tax Purposes of $132,450, all of which is rental income. Her husband has Net Income For Tax Purposes of $1,600. They have three children, ages 14, 16, and 19. All of these children are in good health and continue to live at home. The 19 year old child has Net Income For Tax Purposes of $8,460. During the current year, Ms. Lassiter pays the following medical expenses:

Marion $ 4,240

Her Spouse 3,450

14 Year Old Child 1,860

16 Year Old Child 2,450

19 Year Old Child 6,720

Total $18,720

Required - Determine the maximum amount of 2020 personal tax credits, including transfers from a spouse or dependent, that can be applied against federal Tax Payable by the taxpayer.

Reference no: EM133026922

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