Obama education tax credit will benefit lower and middle income families
The Obama education tax credit will not only target lower income families, but those of middle income families as well. Here’s how the numbers stack up for two families of 4:
Adjusted gross income $66,000
Itemized deductions 20,000
4 exemptions @$3,500 14,000
Taxable Income $ 32,000
Tax $ 4,000
Tax credit 4,000
Tax due 0
Adjusted gross income $56,900
Standard deduction 10,900
$46,000
4 exemptions @3,500 14,000
Taxable income $32,000
Tax $ 4,000
Tax credit 4,000
Tax due 0
