Question

Michael and Diana are married and have three children, Amara, Bryan, and Skyla, ages 16, 14, and 8 respectively. They live at 120 Main Street, Flushing NY 11425. Michael is a professor working TMCC's  Business department. Diana works part-time for Creation, a genetic research lab. During 2019, Michael and Diana earned $52,000 in wages and $500 in interest income. Assume for 2019, Michael and Diana are filing a joint return and all their children are qualified dependents.

Instructions: Compute if any, the amount of Child Tax Credit and EIC they can claim

Answer 1

The child tax credit is upto $2000 per child under the age of 17. If credit exceeds owed tax, families may receive upto $1400 per child as a refund. Other dependents uncluding children between the age of 17-18 and full time college students between the age of 19-24, can receive a non refundable credit of upto $500 each.

Investment income should be $3600 or less in the year.

Max credit amount for 2019:

- 6557 with three or more children

- 5828 with two children

- 3526 with one child

- 529 with no child

Filing	0	1	2	3
Single, head of household or widowed	15570	41094	46703	50162
Married filing jointly	21370	46884	52493	55952

In the given case, there are 3 children

Total credit = 2000x3 = 6000

Total joint income = 52000+500 = 52500