Rhianna and Jay are married filing jointly in 2017. They have six children for whom they may claim the child tax credit. Their AGI was $123,440. What amount of child tax credit may they claim on their 2017 tax return?

Question

Quizplus · Accepted Answer

The child tax credit for 2017 is $1,000 per qualifying child. Since this couple has six qualifying children, their potential child tax credit is $6,000. However, the child tax credit is phased out for taxpayers with AGIs above $110,000 for married filing jointly. The phaseout amount is $50 for each $1,000 (or fraction thereof) by which the taxpayer's AGI exceeds the threshold amount. In this case, the couple's AGI exceeds the threshold amount by $13,440. Dividing that amount by 1,000 and multiplying by $50, we get a phaseout amount of $672. Subtracting that amount from the potential credit of $6,000, we get a final child tax credit of $5,328. Rounded to the nearest dollar, the answer is $5,300.

Rhianna and Jay Are Married Filing Jointly in 2017