Trey has two dependents, his daughters, ages 14 and 17, at year-end. Trey files a joint return with his wife. What amount of child credit will Trey be able to claim for his daughters under each of the following alternative situations?
a. His AGI is $109,300.
Please show how you get your answer.
Homework Answers
| a.) | AGI | $ 109,300 |
| AGI Threshold for Married filing Jointly | $ 400,000 | |
| Age Test | Under 17 Years | |
| Child tax credit per Qualifying Child | $ 2,000 |
|
Since, Trey AGI is below the threshold limit of $ 400,000 , they would be eligible for Full child tax credit . However only one daughter aged 14 is qualifiy \child as per Age test. Other daughter aged 17 will not be considered as qualifying child as she has attained age of 17 year. So, in this case Trey will be able to claim $ 2,000 as Child Tax Credit . |
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