Final answer:
Jerry and Lana may not be able to claim the Child Tax Credit since their AGI of $424,000 exceeds the phase-out threshold of $400,000 for married couples filing jointly in 2019. The Child Tax Credit amount would be reduced and could possibly be eliminated due to their high AGI.
Step-by-step explanation:
The question pertains to the Child Tax Credit that Jerry and Lana can claim for their two children. For the tax year 2019, the Child Tax Credit offers a credit of up to $2,000 per qualifying child under the age of 17. However, the credit begins to phase out for married couples filing jointly at an adjusted gross income (AGI) of $400,000. Since Jerry and Lana have an AGI of $424,000, they are over the threshold for the full credit amount.
Due to their AGI exceeding the phase-out threshold, the available credit amount would be reduced by $50 for each $1,000 (or fraction thereof) by which their AGI surpasses $400,000. Therefore, they would experience a reduction in the credit amount. To accurately calculate the exact credit Jerry and Lana can claim, one would need the IRS phase-out formula and rules specific to the tax year 2019, which are not provided with this question. In situations where the AGI is well above the phase-out threshold, it is possible they may not be eligible for any credit at all.