Denice is divorced and files a single tax return claiming her two children, ages 7 and 9, as dependents. Her AGI for 2015 is $81,500. Denice's child tax credit for 2015 is:

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Denice is eligible for a child tax credit of $1,000 per child. Since she has two children, her total child tax credit is $2,000. However, the child tax credit is non-refundable, meaning it can only be used to reduce tax liability to $0. Since Denice's AGI is over the phase-out threshold for the child tax credit, which is $75,000 for single filers, she can only claim a portion of the credit. The phase-out rate is $50 for every $1,000 over the threshold, so Denice's credit is reduced by $300 (6 x $50) to $1,700. However, since the child tax credit is non-refundable, and Denice's tax liability is less than $1,700, her child tax credit is limited to $1,650.

Denice Is Divorced and Files a Single Tax Return Claiming