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?

His AGI is $420,100, and his daughters are ages 10 and 12.

Answer 1

Solution: Amount of Child Credit = $ 2,950

Calculation:

Excess AGI [420100 - 400000]	$       20,100
CTC phaseout $ 50 per 1000 or part there of [20100/1000]*50	$         1,050
Credit Claim
Child Tax Credit[2000*2]-1050]	$         2,950
Credit for Other Dependent of age of 17 or above	$                -
Total Child Tax Credit	$         2,950

Child Tax Credit is $ 2000 per child below the age of 17.