Problem 12-35 (LO. 4) Durell and Earline are married, file a joint return, and c

Question

Problem 12-35 (LO. 4) Durell and Earline are married, file a joint return, and claim dependency exemptions for their two children, ages 5 years and 6 months. They also claim Earline's 18-year-old son from a previous marriage as a dependent. Durell and Earline's combined AGI is $68,000 a. Which children are "qualifying children" for the purposes of the child tax credit? Durell and Earline's child tax credit is b. Assume the same facts, except that Durell and Earline's combined AGI is $122,000. Their child tax credit is

Explanation / Answer

To claim child tax credit in addition to other conditions, child should be under age 17. Hence 18 year old son can not be claimed for child tax credit.

a. Two childer, ages 5 years and 6 months are qualifying childern.

Tax credit= 1000*2= 2000

b.

Maximum credit 2000 AGI 122000 AGI limit 110000 Excess AGI 12000 Multiplied by 5% 600 Amount of phase out 600 -600 Child tax credit 1400

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