Question

r. and Mrs. Chalk have three dependent children, ages 3, 6, and 9. Assume the taxable year is 2019. Compute their child credit if AGI on their joint return is $91,300. Compute their child credit if AGI on their joint return is $465,700. Compute their child credit if AGI on their joint return is $197,000 and assume that they have one non-child dependent who meets the requirements for the child credit.

Answer 1

Compute their child credit if AGI on their joint return is $91,300.

Child tax credit for 2019 was $2,000 per qualifying child under 16

total child tax credit = $2,000 x 3 = $6,000

Compute their child credit if AGI on their joint return is $465,700.

Child tax credit for 2019 was $2,000 per qualifying child under 16, but if phases out after $400,000. For each $1,000 above the threshold, the tax credit is reduced by $50.

total child tax credit = $6,000 - (66 x $50) = $6,000 - $3,300 = $2,700

Compute their child credit if AGI on their joint return is $197,000.

Child tax credit for 2019 was $2,000 per qualifying child under 16, plus $500 per qualifying dependent that is not a child.

total child tax credit = $6,000 + $500 = $6,500