H and W are married and have three children.At the close of 20x6, the children, X, Y, and Z, were ages 12, 16 and 18 respectively.H and W claim a dependency exemption for each of the children.This year H and W reported adjusted gross income of $104,200.The allowable child tax credit for H and W is
A)$1,500
B)$2,000
C)$400
D)$550
E)$0

Question

Quizplus · Accepted Answer

The child tax credit is $2,000 per qualifying child. H and W have three qualifying children, so their total child tax credit is $6,000. However, the child tax credit phases out for taxpayers with adjusted gross incomes above certain levels. In 2020, the phaseout begins at $400,000 for married couples filing jointly. H and W's adjusted gross income of $104,200 is well below this threshold, so they can claim the full child tax credit of $6,000.

H and W Are Married and Have Three Children