Question

Trey has two dependents, his daughters, ages 14 and 18, at year-end. Trey files a joint return with his spouse.

What amount of child tax credit (either as a child or a qualifying dependent) will Trey be able to claim in 2022 for his daughters under each of the following alternative situations? Use Exhibit 8-8.

Required:
His AGI is $103,300.
His AGI is $431,000.
His AGI is $421,200, and his daughters are ages 10 and 12.

EXHIBIT 8-8 Child Tax Credit Phase-Out Threshold
Filing Status Phase-Out Threshold
Married filing jointly $400,000
Married filing separately 200,000
Head of household and single 200,000

Answer 1

According to Exhibit 8-8, the phase-out threshold for married filing jointly is $400,000.

For Trey's first situation where his AGI is $103,300, he will be able to claim the full child tax credit of $3,000 for his two daughters.

For Trey's second situation where his AGI is $431,000, he will not be able to claim any child tax credit for his two daughters as his AGI exceeds the phase-out threshold.

For Trey's third situation where his AGI is $421,200 and his daughters are ages 10 and 12, he will be able to claim the full child tax credit of $6,000 for his two daughters.

I hope this helps you! Let me know if you have any other questions.