Howard is single and has a son age 15.Howard's adjusted gross income for 2013 is $80,000.What amount can he claim for the child tax credit?

Question

Quizplus · Accepted Answer

The child tax credit for tax year 2013 is $1,000 per qualifying child under the age of 17. However, the credit is gradually phased out for taxpayers with adjusted gross income over certain thresholds. For a single filer, the phase out begins at $75,000. Howard's income is $80,000, so the credit is reduced by $50 for every $1,000 over the threshold. Howard's income is $5,000 over the threshold, so his credit is reduced by $250 (50 x 5). Therefore, he can claim $750 ($1,000 - $250) for the child tax credit.

Howard Is Single and Has a Son Age 15