Question

Ellen is 62. During the interview, she mentions that she always filed a joint return with her husband who died in 2014. Ellen has not remarried and she pays all the cost of keeping up her home. She earned $28,500 in wages for 2018. Ellen provides all the support for her two grandchildren who lived with her all year. Tricia is 12 years old and Evan is 16 years old. She does not have enough deductions to itemize. Her income tax before credits is $1,050. Ellen, Tricia, and Evan are all U.S. citizens with valid Social Security numbers. 6. The maximum amount of additional child tax credit that Ellen is able to claim per qualifying child is:

	A. $500

	B. $1,000

	C. $1,400

	D. $2,000

Christopher and his wife Amanda have lived in the United States since 2012 and have Individual Taxpayer Identification Numbers (ITINs). Christopher is 45 and Amanda is 40. They have been married since 2000. They both worked in 2018 and their combined wages for the year were $40,000. They have one child, Jennifer, who is 3 years old and lived with them all year. Jennifer is a U.S. citizen and has a valid Social Security number. In order for them to work, they paid $5,000 in daycare for Jennifer. The statement from the daycare provider includes the provider's name, address, valid Employer Identification Number, and the amount paid for Jennifer's care. Christopher and Amanda provided all the support for Jennifer and all the costs of keeping up their home. 7. Can Christopher and Amanda claim Jennifer as a qualifying child for the earned income credit (EIC)?

	A. Yes, because their income is below the threshold for claiming EIC.

	B. Yes, because Jennifer is 3 years old and lives with her parents.

	C. No, because Christopher and Amanda both have ITINs.

	D. Both A and B.

Christopher and his wife Amanda have lived in the United States since 2012 and have Individual Taxpayer Identification Numbers (ITINs). Christopher is 45 and Amanda is 40. They have been married since 2000. They both worked in 2018 and their combined wages for the year were $40,000. They have one child, Jennifer, who is 3 years old and lived with them all year. Jennifer is a U.S. citizen and has a valid Social Security number. In order for them to work, they paid $5,000 in daycare for Jennifer. The statement from the daycare provider includes the provider's name, address, valid Employer Identification Number, and the amount paid for Jennifer's care. Christopher and Amanda provided all the support for Jennifer and all the costs of keeping up their home. 8. Which credits can Christopher and Amanda claim on their tax return?

	A. Child and dependent care credit

	B. Child tax credit

	C. Credit for other dependents

	D. Both A and B

Answer 1

6. Answer is option C $1400

After 2017, the maximum amount of additional child tax credit refundable per child is $1400

7. Answer is option D

As their total income is less than $45207 and Jennifer is below 17 years and fulfills all requirements of a qualifying child.

8. Answer is D. Both A and B

As Christopher and Amanda provide all support for Jennifer and Jennifer satisfies all criteria for qualifying child they can claim both Child and dependent care credit and child tax credit.

answered by: anonymous