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-$2,000.

B-$460.

C-$0.

D-$1,540.

E-$700.

Solution

The correct option is B

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Hypothetically, the refundable child tax credit ought to be $1000*2 = $2000. Be that as it may, since the tax liability is $1300 which is under $2000, the tax bill will lessen to zero. So successfully you are using just $460 of child tax credit.

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Hope that helps.

Feel free to comment if you need further assistance J