Exam 12: Tax Credits and Payments

George and Martha are married and file a joint tax return claiming their two children,ages 10 and 8 as dependents.Assuming their AGI is $123,450,George and Martha's child tax credit is:

Jermaine and Kesha are married,file a joint tax return,have AGI of $82,500,and have two children.Devona is beginning her freshman year at State University during Fall 2010,and Arethia is beginning her senior year at Northeast University during Fall 2010 after having completed her junior year during the spring of that year.Both Devona and Arethia are claimed as dependents on their parents' tax return.Devona's qualifying tuition expenses and fees total $4,000 for the fall semester,while Arethia's qualifying tuition expenses and fees total $6,200 for each semester during 2010.Full payment is made for the tuition and related expenses for both children during each semester.The American Opportunity credit available to Jermaine and Kesha for 2010 is:

Explain the purpose of the tax credit for rehabilitation expenditures and describe the general characteristics of its computation.

In March 2010,Gray Corporation hired two individuals,both of whom were certified as long-term recipients of family assistance benefits.Each employee was paid $11,000 during 2010.Only one of the individuals continued to work for Gray Corporation in 2011,earning $9,000 during the year.No additional workers were hired in 2011.Gray Corporation's work opportunity tax credit amounts for 2010 and 2011 are: