Question

G and J are married and have three children: R, S, and C. R, age 19, was the star of the men's volleyball team at State University, where he was a full-time student in the current year. He received a scholarship valued at $8,000. G and J provide his other support of $5,000. S, who was 16 and a full-time high school stu­dent all year, worked part-time, earning $3,700. G and J spent $4,000 toward S's support. C was a high school freshman and had no income during the year. G&J have AGI of $100,000. What is their child tax credit for the year?

$0

$2,000

$4,000

$4,500

$6,000

Answer 1

Child Tax Credit
Child	Amount
R	$          500	CTC of $500 is available to dependents who are not under 17. R qualifies in Support test as the scholarship amount is not considered.
S	$       2,000	Age Test - CTC for child under age 17 is $2000.
C	$       2,000	Age Test - CTC for child under age 17 is $2000.
Total	$       4,500