Final answer:
Option a is currect option.The Child Tax Credit characteristics include a credit of $3,000 to $3,600 per child, eligibility for children under age 17, and a requirement that the individual must be a qualifying child for dependent purposes. The credit phases out based on the taxpayer's AGI to target lower to moderate-income families.
Step-by-step explanation:
The criteria characteristic of the Child Tax Credit are as follows:
- The amount of the credit is $3,000 per child. However, this amount can be up to $3,600 for children under the age of 6, depending on the changes that took effect in 2021 as part of President Joe Biden's American Rescue Plan.
- The individual must be under age 17 at year-end. This is to ensure that the credit is applied for children who are still considered minors.
- The individual must be a qualifying child for dependent purposes. This ensures that the child meets certain criteria set out by the IRS, such as relationship, residency, and age.
- The credit is subject to phase-out based on the taxpayer's AGI (Adjusted Gross Income). This phase-out helps to target the credit to lower to moderate-income families and mitigate the potential for a poverty trap.
Regarding the other options, an individual must be under age 13 at year-end is not a criterion for the Child Tax Credit but for other dependent care benefits. Also, the individual must be a qualifying relative for dependent purposes is incorrect as the CTC is designed for qualifying children, not relatives that do not meet the child criteria.