Question

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 $107,600.

b. His AGI is $426,900.

c. His AGI is $429,800, and his daughters are ages 10 and 12.

Answer 1

Answer:
As per USA tax legislation, the child tax credit is an income tax credit of $2,000 per eligible child for American taxpayers. Eligible children are legal dependents under the age of 17 who are U.S. citizens, U.S nationals, or U.S. resident aliens. The taxpayes whose adjusted gross incomes $400,000 for married couples and $200,000 for single, head of household, and qualifying widow(er) filers are eligiable to take benefit of child tax credit. So in the given cases:

a. He is eligiable for child credit of $2,000 for 1 daughter only whose age is 14 and as one dependent is age of 17 years but for child credit eligibility dependent should be under the age of 17.
b. As his AGI is more than the limits so he is not eligiable for any child credit
c. As his AGI is more than the limits so he is not eligiable for any child credit