Question

Mr. and Mrs. Chaulk have three dependent children, ages 3, 6, and 9. Assume the taxable year is 2018. a. Compute their child credit if AGI on their joint return is $106,300. b. Compute their child credit if AGI on their joint return is $480,700. c. Compute their child credit if AGI on their joint return is $182,000 and assume that they have one non-child dependent who meets the requirements for the child credit. Complete this question by entering your answers in the tabs below. Required A Required B Required C s $106,300 Compute their child credit if AGI on their joint return Child credit Required A Required B > Complete this question by entering your answers in the tabs below. Required B Required A Required C Compute their child credit if AGI on their joint return is $480,700. Child credit KRequired A Required C Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute their child credit if AGI on their joint return is $182,000 and assume that they have one non-child dependent who meets the requirements for the child credit. Child credit Required C > Required B

Answer 1

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Answers are highlighted in yellow: younger) Solution: To qualify for child tax credit (CTC), child's age must be under 17 (e.g. 16 or 2018, 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 Explanation: Answer: $ 6,000 Excess AGI a) 0 CTC (2000*3) 6,000 Credit for Other dependent $ Total Child Credit $6,000 $ 1,950 Excess AGI (480700-400000) 80700/1000 (81 50) CTC (6000-4050) b) 81 4050 $ 1,950 Credit for Other dependent $ Total Child Credit 1,950 4,500 c) Excess AGI= CTC (2000* 2) = $4,000 Credit for Other dependent 500 CTC 4,500