Question

Steve and Leslie are a married filing joint couple with AGI of $350,000 in 2019. They have a daughter, Lily, who is 16 years old and lives with them. Dennis, Leslie's father, also lives with them and has income from a part-time job of $4,000. Lily and Dennis both qualify as dependents. How much child tax credit and family tax credit may Steve and Leslie claim on their tax return?

a. $0
b. $2,000
c. $2,500
d. $4,000

Answer 1

C) $2,500

Step-by-step explanation:

First of all, Steve and Leslie's income is less than $400,000, so they can apply for both tax credits.

Steve and Leslie can receive up to $2,000 per year on child tax credit, since Lily is under 17.

They can also claim $500 per year on family tax credit, since Dennis's income is less than $4,150 and he lives with them.

Their total tax credit = $2,000 + $500 = $2,500