Question

Determine the amount of child tax credit in each of the following cases:

Determine the amount of child tax credit in each of the following cases Child Tax Credit Allowed a A single parent with modified AGI of $214,900 and two child(ren). b. A single parent with modified AGI of $81,978 and three child(ren). c. A married couple filing a joint return, with modified AGI of $408,788 and four child(ren). 6,000

Answer 1

VYYNN child tax credit = $ 2000 per qualifying child • The child tax credit reduced if your Moeligied adjusted gross income (MAGI) is above certain limit for each $1000 of income above threshold your available child tax credit is reduced by $50. The phase out beging at $400,000 for married $ 200,000 for every one @ Single parent with AGI of $ 214,900 Qualifying children = 2 Amount exceeding threshold = $214,900 - $200,000 = $1,900 phase out = $19,900 = 14.9 founded to 15 $1000 3 15 X $50 = $750 child tax credit = ax $2000 - $750 = $3250] ® single parent with AG I of $81,978 - Qualifying children = 3 Amount is within threshold limit. Fully allowable child tax credit = 34 $2000 $6000 Married couple Gilling jointly with AGI of $ 408,798 Qualy tying children =4 Amount exceeding threshold = $ 408 788 – $400,000 = $ 8788 Phase out = $8788 / $1000 = 8.78 Younded = 9X $50 = $450 child tax credit = 4x $2000 - $450 = $ 7550 © , a