Question

Which of the following statements is false? A. The maximum nonrefundable amount of the child tax credit is $2,000 per qualifying child. B. The maximum nonrefundable amount of the credit for other dependents is $500 per qualifying dependent. C. The amount of the refundable additional child tax credit is limited to $1,400 per qualifying child. D. Children with an ITIN qualify for the child tax credit and the additional child tax credit.

Answer 1

A. The maximum credit per qualifying child is $2,000. Taxpayers can refund upto $1,400 for each qualifying child as Additional tax credit. Hence, the statement, "The maximum non refundable amount of the child tax credit is $2,000 per qualifying child" is true and not false.

B. Dependents may still qualify for the credit for other dependents who do not qualify for Child tax credit. It is a non refundable tax credit of upto $500 per qualifying child. Hence the statement, "The maximum non refundable amount of the credit for other dependents is $500 per qualifying dependent" is true and not false.

C. From 2018, the amount of maximum refundable tax credit is $1,400. If the tax amount is nil and the minimum taxable income is $2,500, the amount of maximum refundable tax credit can be claimed. Hence, the statement, "The amount of the refundable additional child tax credit is limited to $1,400 per qualifying child" is true and not false.

D. One cannot claim the child tax credit with child having an ITIN. The child must have an SSN (Social Security Number) to be a qualifying child for child tax credit and additional child tax credit. Hence, the statement, "Children with an ITIN qualify for the child tax credit and additional child tax credit" is false.

The answer is D. Children with an ITIN qualify for the child tax credit and additional child tax credit.

Total Itemized Deductions for 2019

Particulars	Amount (in $)
Deduction for unreimbursed medical expenses	3,500
State and local taxes	10,000
Mortgage interest	4,300
Credit card debt	-
Charitable contributions	2,000
Professional organizations	-
Safe and Deposit box rental	-
Subscriptions	-
Tax preparation fees	-
Union dues	-
TOTAL	$19,800

Working Note

1. AGI = $60,000

7.5% of AGI = $4,500

Unreimbursed medical expenses = $8,000

Deduction for unreimbursed medical expenses = $3,500

2. State and local taxes = $5,400

Real estate taxes = $6,000

Personal property taxes = $400

Total = $11,800

Limited to $10,000

Therefore the answer is $19,800.

Answer is B. $19,800.