Mr.and Mrs.Cox reported $115,900 AGI on their joint return.The couple has three dependent children under age 17.Compute their child credit.

Question

Quizplus · Accepted Answer

The child tax credit for each dependent child under 17 for 2020 is $2,000. However, the credit begins to phase out for taxpayers with AGI exceeding $400,000 for joint filers. In this case, the Cox's AGI is $115,900, well below the phase-out limit, so they can claim the full $2,000 credit for each of their three dependent children, for a total child tax credit of $6,000. Therefore, the correct answer is C.

MrAnd MrsCox Reported $115,900 AGI on Their Joint Return