Denice is divorced and files a single tax return claiming her two children, ages 7 and 9, as dependents. Her AGI for 2014 is $81,500. Denice's Child Credit for 2014 is:

Question

Quizplus · Accepted Answer

Denice is eligible for a Child Tax Credit of up to $1,000 per child. However, because her AGI is above $75,000, the credit is reduced by $50 for every $1,000 over the threshold. Denice's AGI is $6,500 over the threshold, so her credit is reduced by $325 (6.5 x 50) for each child. This means she is eligible for a Child Tax Credit of $1,000 - $325 - $325 = $350 per child, or a total of $700 for both children. Therefore, the correct answer is D.

Denice Is Divorced and Files a Single Tax Return Claiming