Question

Child Tax Credit (LO 7.1)

Calculate the child tax credit for the following taxpayers.

Round any division "up" to the nearest whole number.

a. Jeremy is a single (head of household) father with $80,100 of AGI and has a dependent 8-year-old son:
$

b. Jerry and Ann have $100,000 of AGI, file jointly, and claim two dependent preschool children:
$

c. James and Apple have AGI of $415,250, file jointly, and claim three dependent children (ages 7, 10, and 19):
$

Answer 1

Computation of child tax credit

a. Since Jeremy AGI is$80100 and has a dependent son whse age is 8 years at the end of the tax year i.e., younger than 17 , the child tax credit will be $2,000

b Jerry and Ann jointly file their tax return and their AGI is less than $400,000, they are also eligible for child tax credit of $2,000 per qualifying child.

Child tax credit = $2000×2 = $4,000

c. James and Apple have AGI of $415,250 which is more than $400,000 they are not eligible for child tax credit.