Question

1. Durell and Earline are married; file a joint return; and their two children, ages 5 years and 6 months, qualify as dependents. Also, Earline's son from a previous marriage, age 18, and not a full-time student, qualifies as a dependent. Durell and Earline's combined AGI is $68,000. Which children are "qualifying children" for the purposes of the child tax credit? Only the two young children, ages 5 years and 6 months

Durell and Earline's child tax credit is........

Answer 1

The child tax credit limit is 2000 for each dependant child.

To qualify for the purposes of tax credit, a child means a child who is 17 years of age or less and who has stayed with the parents for more than 6 months. This also applies to a child who is born in that year and technically havent stayed with the parents for 6 months.

For a married couple filing a joint return the threshold limit for AGI is 110000

So, in the above problem Durell and Earline are married and their AGI Is 68000 which is well below the threshold limit.

Also, the two children eligble for tax credit are the two young ones

So, Durell and Eralines tax credit will be $2000 for each child that is $4000

Durell and Earlines child tax credit is - $4000