Question

13-36 Child Tax Credit. H and W are married with three children. At the close of 2019, the children, A, B, and C, were ages 2, 6, and 8, respectively. The children qualify as the couple's dependents. Determine the allowable child tax credit for H and W. assuming their modified AGI is a $50,000 b. $100.000 c. $500,000

Answer 1

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Solution: Answers are highlighted in yellow: To qualify for child tax credit (CTC), child's age must be under 17 (e.g. 16 or younger). 2019, per child tax credit - $2,000. CTC is phaseout $50 per $1000 or fraction in Excess AGI limit. Credit for other Dependent is $500 per person. Answer: $ 6,000 a) Explanation: Excess AGI = CTC = (2000*3) Total Child Credit $ $ 6,000 6,000 b) $ 6,000 Excess AGI = CTC = (2000*3) = Total Child Credit $ $ 6,000 6,000 c) $ 1,000 100.00 Excess AGI = (500000 - 400000) = 100000/1000 = (100*50) = 5000 CTC = (2000*3) - (5000) = $ 1,000