Trey has two dependents, his daughters, ages 14 and 17, at year-end. Trey files a joint return with his wife. What amount of child credit will Trey be able to claim for his daughters under each of the following alternative situations? His AGI is $422,100.
Amount of child tax credit $ 0
Explanation :
He has one qualifying daughter,
For whom he will receive a $ 1,000 credit. AGI does not exceed $ 110,000:
So Trey's AGI exceeds $ 110,000 by $ 312,100. For each $ 1,000 that exceeds $ 110,000, $50 will be subtracted from the total credit. They's AGI exceeds $110,000 by $ 1,000 a total of 312 times $ (312100/$1000). Therefore we will reduce the total credit of $1,000 by $ 0($50*312).
Trey's amount of child tax credit is equal to $ 0.($ 1000-1000).
Get Answers For Free
Most questions answered within 1 hours.