Ryan and Edith file a joint return showing $130,000 of AGI.They have three dependent children ages 7,9,and 13.What is the amount of their child credit?
A)$0
B)$1,000
C)$2,000
D)$3,000

Question

Quizplus · Accepted Answer

C)The child credit is $1,000 per qualifying child,with a phase-out for AGI exceeding $110,000 on joint returns.$130,000 - $110,000 = $20,000.There are twenty $1,000 increments (or parts thereof)exceeding the $110,000 phase-out floor,so the child credit will be reduced by 20 × $50 = $1,000.Credit before phase-out is 3 children × $1,000 = $3,000.After the phase-out the credit is $2,000 = $3,000 - $1,000.

Ryan and Edith File a Joint Return Showing $130,000 of AGI.They