Question

Peter and Lois Griffin have three children, Stewie, Chris, and Meg. The Griffin's tax on line 11 of their From 1040 equals $7,300. They are eligible for the following tax credits:

• Child and dependent care credit of $79 for Stewie's daycare
• Child tax credit of $2,000 each for Chris and Stewie (Meg is too old for this credit)
• They are NOT eligible for the Earned Income Credit
• Meg's first year of tuition at Quahog Community College was $1,800 and her text books cost $600

Line 12 on Form 1040 equal

Answer 1

line 12 on form 1040 = $6179

Line 12 on form 1040 is for child tax credit and credit for child and dependent care

therfore,

Line 12 on Form 1040 = Child and dependent care credit+Child tax credit+Meg's first year of tuition fees and text book costs = 79+(2000*2)+((2000*100%)+(400*25%)) = $6179

American opportunity credit is available on both tuition fees and text book costs, therefore, total is 2400

american opportunity credit is available 100% on first 2000 and 25% on next 2000, in this is maximum availabe up to $2500

in the given case it will be 100% of first 2000 and 25% on next 400.