Question

The calculation of the additional Child Tax Credit is first triggered when __________.

a. The taxpayer's modified adjusted gross income (MAGI) exceeds $12,400 in 2016.

b. The taxpayer's modified adjusted gross income (MAGI) is more than 15% over the threshold.

c. More than two children lived with the taxpayer.

d. Due to tax liability limits, the taxpayer did not receive the maximum Child Tax Credit for which they were eligible.

Answer 1

Answer = D

Accoring to IRS, Additional Child Tax Credit is that portion of Child Tax Credit which is refundable and can be claimed in cases where IRS is less than the Qualified Child Tax Credit. As we know that Child Tax Credit is non-refundable, so Additional Child Tax credit is the excess of Credit over tax.

There is no eligibility about Modified Adjusted Gross Income, so Option A and B cannot be true and there is no thing that there must be more than two children lived with the taxpayer, so Option C also cannot be true.