Question

13. David and Julie have two children, ages 18 and 10. Their modified AGI is $120,000. What is the amount of their child tax credit?

14. Dillon and Angie are married and incur $6,500 of qualifying expenses to care for their two children, ages 2 and 5. Dillon's earned income is $35,000 and Angie's earnings from a part-time job are $6,000. What is the amount of the qualifying expenses for purposes of computing the child and dependent care credit?

Answer 1

PART – 13)

The child tax credit in 2019 has the limit of $2,000 for each dependent child who is under 17 years. Thus, Julie and David are eligible for only for the credit of child who is of 10 years i.e. of $2,000.

PART – 14)

The qualifying amount for child and the dependent care credit is limited to the range from 20% to 35% but it is limited up to $3,000 if there is only one dependent i.e. qualifying child and if there are two or more than two dependent child then the amount will be limited to $6,000. Angie and Dilllon has two children who are dependent. Thus, the qualifying expenses will be $6,000.