Question

Justin and Janet, whose AGI is $456,000, have one daughter, age 5. How much child tax credit can they take?

Answer 1

Taxpayers can claim a child tax credit (CTC) of upto $2000 for each child under age 17 who is citizen. The Credit is reduced by 5% of AGI over $200000 (single parent) and $400000 (married couples).

If credit exceed taxes owed, taxpayers can recieved upto $1400 of Balance as refund (Refunded CTC).

In the above case,

Justin and Janet are married couple whose AGI is $456000 which is above $400000 so credit will reduce by 5%.

i.e 2000-100(5% of 2000)

= $1900.

They can take $1900 as CTC.