John and Shirley have one child eligible for the Child Tax Credit, file their tax return as married filing jointly and, at a $410,000 modified adjusted gross income for 2019, they have an AGI that exceeds the threshold at which the Credit begins to phase out. For what Child Tax Credit would they be eligible?

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Milton Wood

9 June, 08:10

John and Shirley have one child eligible for the Child Tax Credit, file their tax return as married filing jointly and, at a $410,000 modified adjusted gross income for 2019, they have an AGI that exceeds the threshold at which the Credit begins to phase out. For what Child Tax Credit would they be eligible?

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Logan Soto · Answer 1

Since John and Shirley's income is above that level, $410,000, they will receive up to $1,500 per qualifying child.

Explanation:

The amount of the child tax credit for 2019 is up to $2,000 per child and $500 per dependent, but if the AGI exceeds $400,000 for a married couple filing jointly, it starts to phase out. The credit is reduced by $50 for each $1,000 over the threshold amount.

Since John and Shirley's income is above that level, $410,000, they will receive up to = $2,000 - (10 x $50) = $1,500 per qualifying child.