Question

1. The child tax credit for a married couple with two dependent children (ages 6 and 9) and AGI of $121,600 is: $0. $600. $1,400. $4,000. none of the above.

2.

A married couple files a joint return. During 2018 they pay college tuition and fees for their two dependent children. The couple has calculated their American opportunity credit to be $2,300. If the couple's AGI is $112,000, and other tax credits have brought their tax liability down to $0, their refundable education tax credit can be as high as:

		$1,380.
		$0.
		$690.
		$920.
		$1,035.

Answer 1

Part 1

Answer is option D

d. $4000

The married filing jointly are able to get full child tax credit of $2000 per qualifying child if their MAGI is under $400000. Both children of age 6 and 9 are qualifying children for child tax credit as being under the age of 16 and getting more than half of support from their parents.

Thus, total child tax credit = 2000*2 = 4000

Part 2

Answer is D.

d. $920

Generally, when the tax liability is brought down to 0, no tax credit is available, however as, American opportunity tax credit is refundable credit, 40% of credit is available. Thus, American opportunity tax credit = 2300*40% = 920