Mr.and Mrs.Kain reported $80,000 AGI on their joint return.The couple has four dependent children: Beatrice,age 19; Bruce,age 16; Angie,age 11,and Arnold,age 8.Compute the Kains' child credit.

Question

Quizplus · Accepted Answer

The child credit allows a maximum credit of $2,000 for each qualifying child under the age of 17. However, in this case, only two of the Kains' children are under 17, meaning they qualify for a maximum credit of $4,000. The credit is also limited to $2,000 per return, so the Kains can only receive a maximum credit of $2,000. However, since their AGI is below the phase-out threshold of $400,000 (for joint filers), they can claim the full credit of $2,000. Therefore, the Kains' child credit is $3,000 ($2,000 for the two children under 17).

MrAnd MrsKain Reported $80,000 AGI on Their Joint Return