A taxpayers earned income and AGI are both 34500 The taxpaye

A taxpayer\'s earned income and AGI are both $34,500. The taxpayer\'s total tax liability (before any tax credits) is $1,300. The taxpayer\'s only tax credits are an $840 child and dependent care credit and the child tax credit for two qualifying children. The taxpayer\'s refundable child tax credit is:

A. $2000

B. $460

C. $0.

D. $1540

D $700

Solution

Answer:

Option a is correct.

The child tax credit is a nonrefundable credit that allows taxpayers to claim a tax credit of up to $1,000 per qualifying child, which reduces their tax liability. Therefore, for two qualifying children, the taxpayer\'s refundable child tax credit would be $1,000 x 2 = $2,000.