Nate and Nikki have three dependent children ages 12,15,and 17.Their modified AGI is $120,000.What is the amount of the child credit to which they are entitled?
A)$0
B)$500
C)$1,500
D)$2,000

Question

Quizplus · Accepted Answer

C)The child credit before the phase-out is $2,000 (2 × $1,000); the 17-year-old does not qualify.They have excess AGI of $10,000 ($120,000 - $110,000).Their credit should be reduced by 10 ($10,000/$1,000)× $50 = $500.Thus,their child credit is $1,500.

Nate and Nikki Have Three Dependent Children Ages 12,15,and 17