Question

All answers must follow New York State tax laws.

David Miller (age 34, SSN 846-66-7922) and his wife, Emily Miller (age 33, SSN 234-
56-7891), reside at 293 E. Main Street in Sterling, MA, 01564 with their two children
whom they fully support: Catherine (age 13, SSN 397-73-8399) and Michael (age
11, SSN 397-73-8566).
During the year, Emily worked full-time as a customer service representative at a
local bank and earned $37,600. Her employer withheld the following from her
wages:
Federal income tax $2,250.00
State income tax $1,124.60
Social security tax $2,331.20
Medicare tax $545.20
ROTH IRA contribution $5,500.00

David attended college full-time for 5 months and part-time (at least half time) for
7 months in pursuit of a bachelor’s degree in accounting. He attended the
University of Massachusetts, which is located at 600 University Drive in Amherst,
MA 01003. David received a tax-free scholarship that paid for most of his college
expenses, however, he did pay $900 for tuition and fees. The college did not send
David a Form 1098-T for these payments, however, he does have documentation
to substantiate his expenditures. This will be the first year that David has claimed
any education credits; he does not have any other degrees.
The Millers had other income consisting of the following:

Interest on CDs at Platinum Savings Bank $600
Municipal bond interest (state of MA) $2,000.00
Qualified dividends from ABC Corporation $125

The Millers paid $7,000 in qualified childcare expenses so that Emily could work
and David could attend college; the amount was evenly divided between the 2
children. Their childcare provider is their neighbor, Kim Johnson (SSN 456-32-9807),
who resides at 303 E. Main Street in Sterling.

1) Do the taxpayers qualify for the Child Tax credit?
2) If yes, complete the following questions. If no, skip to Additional Child Tax credit.
3) Number of qualifying children?
4) Amount of initial credit?
5) Amount of non-refundable child tax credit that can be taken

Answer 1

1. Child tax credit :

New York's Empire State Child Tax Credit is a refundable credit for full-year New York State residents with children who qualify for the Federal Child Tax Credit and are at least four years of age. The Federal Child and Dependent Care Credit is atax credit offered by the federal government.

The credit is a minimum of 20% and as much as 110% of the federal credit, depending on the amount of your New York State adjusted gross income.

Yes , the tax payers are elegible for chind tax cerdit since they are full year resident of New york state.

3.Qualifying Children :

2 chindren are qualified for child tax credit.

4. Initial credit will be $ 2000 will be the child tax credit.