Howard is single and has a son age 15. Howard's adjusted gross income for 2018 is $16,000 so he has no taxable income or tax liability. What amount can he claim for the refundable child tax credit?

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Quizplus · Accepted Answer

For the tax year 2018, Howard can claim a refundable child tax credit of $1,400 for his 15-year-old son. The American Taxpayer Relief Act of 2012 made the child tax credit more accessible to lower-income families by allowing a refundable portion known as the Additional Child Tax Credit. The refundable portion is up to $1,400 (indexed for inflation from the $1,000 base amount set in previous years) of the $2,000 child tax credit per qualifying child. Since Howard's adjusted gross income is $16,000 and he has no tax liability, he can still receive the refundable part of the credit.

Howard Is Single and Has a Son Age 15