Question

James and Helen are married and file a joint tax return with AGI of $150,000. During 2018, they furnish more than half of the support of their 20-year-old son, Will and their 22-year-old son, Liam. Will earns $12,000 from a part-time job and Liam, who is a full-time college student, earns $5000 from a part-time job. James and Helen also provided more than half the support of Helen's cousin who lived with them for 9 months of the year. Determine who qualifies as dependents of James and Helen and calculate their child tax credit. Please explain why if a member of the household does not qualify. Related to taxation

Answer 1

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Format and Naming convention is not available, can be slightly different: Solution: Answers are highlighted in yellow: a) Qualifying dependents: 1) Liam 2) Helen's cousin b) Child tax credit: $ 0 Not eligible for child tax credit. Liam $0 Helen's cousin Not eligible for child tax credit. c) Why: Because, To qualify child tax credit age of child must be under 17 years. Age of qualifying child must be under 19, or under 24 for a full-time student. To qualify as dependent, dependent must not be a qualifying child of taxpayer and gross income must be less than $4150 for year 2018. will, is neither a qualifying child or dependent. C