Question

Tiffany is unmarried and has a 15-year-old qualifying child. Tiffany has determined her tax liability to be $3,525, and her employer has withheld $1,500 of federal taxes from her paycheck. Tiffany is allowed to claim a $2,000 child tax credit for her qualifying child. What amount of taxes will Tiffany owe (or what amount will she receive as a refund) when she files her tax return?

Answer 1

Answer: $500 out of her paycheck

And $1525 out of the amount of her determination.

Explanation: out of the $2000 tax claim she has, if she files a tax return then $2000-$1500=$500 will be paid to her. That is $500 will be returned out of her paycheck amount.

But out of the amount of tax liability she determined to have it will be $3,525-$2000=$1525. As a determined amount

Answer 2

Answer:

$25

Explanation:

Premise 1: the $1,500 withheld by the employer qualifies as a prepayment because it will be remitted to the government

Premise 2: Since Tiffany is not married, she is allowed the $2000 child tax credit for her qualifying child.

Therefore

1.                    Income Tax Liability for Tiffany                    $3,525

2.                    Any other Tax                                                         0

3.                     Child tax credits                                             ($2,000)

4.                     Withheld By Employer in tax prepayment     ($1,500)

                       Tiffany's tax due with returns                               $25