Question

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

1. A single parent with modified AGI of $213,400 and one child.

2. A single parent with modified AGI of $77,058 and three children.

3. A married couple, filing jointly, with modified AGI of $407,933 and two children.

Answer 1

1 child tax credit is $2000 for each child for single parent and this limit is reduced by 5% if AGI exceeds $200000

so child tax credit in this case : $2000*(1-0.05) =$1900

2 One taxpayer can claim one child credit .

So child tax credit in this case : $2000

3 child tax credit is $2000 for each child for joint filers and this limit is reduced by 5% if AGI exceeds $400000

so child tax credit in this case : $2000*2(*1-0.05) =$3800