Select the best answer What child tax credit can a single ta

Select the best answer. What child tax credit can a single taxpayer claim if they have a modified AGI of $210,000 and two children (ages 5 and 7) in 2018? O A. $4,000 O B. $3,500 O C. $3,250 ? D. $3,000 Submit Answers Exit & Resume Later 99% Complete

Solution

The Child Tax Credit under 2018 tax reform is worth up to $2,000 per qualifying child. The age cut-off remains at 17. Hence both the children are eligible for CTC.

The AGI required for single filer is $200,000. Each $1,000 earned over this amount reduces the Child Tax Credit by $50.i.e., 5% for every 1000 in excess of 200,000.

Thefore,

Child tax credit = ($2000 * 2) - [2(210,000 - 200,000)*5%]

= $4000 - 2(500)

= $4000 - $1000

=$3000

Option D.. $3000 is the correct answer.