Question

Required information Problem 8.70 (LO 8-4) The following information applies to the questions displayed below. 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? Use Exhibit 8-8 Problem 8-70 Part-a a. His AGI is $101.000. Amount of child tax credit

Answer 1

credit is reduced by $50. To Child tax credit = $2000 per qualifying child The child tax credit is reduced if your modified adjusted income (MAGGI) is above certain limit for each $1000 of income above the threshold your available child tax reduced by $50. The phase out of the credit begins at $ 4,00,000 for married filling jointly. The dependent child must be aged below 17. solution Trey is married and filling jointly. Both daughters 14 and 17 qualifying child. @ AGIA $ 101,000 since, AGI is less than phase out threshold he can claim child tax credit fully. child tax credit = $2000 x2 $ $ 4000 AGI $425,400 Amount exceeding threshold = $425,400 - $400,000 = $ 25,400 phase-out = $25,400 = 25.4 [Rounded to 267 $1000 = 26 X $50 for every $100 = $1300 Tehild tax credit = $2000xa- $1300 ) = $2700 AGI ☆ $ 424 900 Amount exceeding threshold = $424,900 - $4,00,000 = $24,900 phase-out = $24,900 = 24•9 (rounded to 25] $1000 = 25% $50 for every $1000 F $ 1250 chid tax credit = $2000 y 2 - $1250 $ 2750