Question

Which of the following statements is TRUE for the Child Tax Credit? The Child Tax Credit cannot be used when using the MFS filing status. The Child Tax Credit may benefit the custodial or the noncustodial parent. A qualifying child for the Child Tax Credit is a dependent under the age of 19 or under the age of 24 if a full-time student. The Child Tax Credit may be applied to a maximum of three qualifying children per return

Answer 1

The correct answer is "The child tax credit may benefit the custodial or noncustodial parent".

Reason: First of all let's understand what do we mean by custodial and noncustodial parent. Custodial parent refers to the parent with whom the qualifying child has lived for the greater time during the year. The other parent is considered to be the noncustodial parent.

Usually, qualifying child is considered to be a dependent of the custodial parent only, however the noncustodial parent can also claim benefit of child tax credit if custodial parent provides Form 8332 which noncustodial parent will then attach to their return to claim the credit.