Question

Which of the following taxpayers (all of whom have one qualifying child for purposes of the child tax credit) are able to claim the full $2,000 child tax credit as a nonrefundable credit on their return? a. Nina, who files as Head of Householder with a modified AGI of $30,000 and a tax liability of $800 b. Sheila, who files as married filing separately with a modified AGI of $220,000 and a tax liability of $4,000 c. Kevin, who files as single with a modified AGI of $70,000 and a tax liability of $7,500 d. Mac and June, who file as married filing jointly with a modified AGI of $430,000 and a tax liability of $20,000

Answer 1

Mac and June, who file as married filing jointly with a modified AGI of $430,000 and a tax liability of $20,000.

Option D

Explanation:

For every eligible minor child under the age of 17 at the end of the tax year, the Child Tax Credit is granted to US taxpayers. In December 2017, the recent tax legislation doubled the loan to 2,000 dollars per child, making much of it reimbursable. 1 It was a non-refundable bonus of $1,000 previously.

If the taxpayer is filing jointly then the claim of child tax credit will be up to the tax liability. Thus, Mac and June has tax liability of $20,000 and the maximum limit of child credit is $2,000. Thus, they can claim full $2,000 claim and reduce their liability to $18,000.