[The following information applies to the questions displayed below.] Trey has t
ID: 2336079 • Letter: #
Question
[The following information applies to the questions displayed below.]
Trey has two dependents, his daughters, ages 14 and 17, at year-end. Trey files a joint return with his wife.
What amount of child credit will Trey be able to claim for his daughters under each of the following alternative situations? Use Exhibit 8-8.
MARRIED FILING $400,000
MARRIED FILING SEPOAERTELY 200.000
HEAD OF HOUES AND SINGLE 200,000
A- His AGI is $100,000.
B-His AGI is $420,000.
C- His AGI is $420,100, and his daughters are ages 10 and 12.
Explanation / Answer
A) The answer is $2000. AS AGI IS LESS THAN THE PHASE-OUT THRESHOLD [($110000) WHICH IS THE LIMIT OF FILING A JOINT RETURN)] FOR A JOINT RETURN OF TREY. HE HAS A $2000 CHILD TAX CREDIT ($1000 * 2 TWO DAUGHTERS). TO AVAIL THIS TAX CREDIT THE CHILD MUST BE UNDER THE AGE OF 17 YEARS AT THE END OF THE YEAR.