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sara is married and loved all year with her husband and two children. she will filt married filling
separately and claim her two children as dependants. her son Glen, born may 1 2010 and her
daughter, rona, born December 25 2000 are birth us citizens and did not provide any of their own
support. Sara's wages were 40000 and she had no other income. her tax is 2155. Sara's child tax
credit is:
a) 2155
b) 2000
c) 0
d) 1000
Solution
The child tax credit is allowed as $1,000 per qualifying child but limited to amount of tax. A
qualifying child must have been under age 17 - age 16 or younger at the end of 2010. Child may
either be son or daughter for which a person can claim child tax credit. For claiming child tax
credit, the child must not have provided more than half of their own support.
In the given case, Sara's son Glen and her daughter Rona, both are under younger than age of 16
at the end of 2010 and they did not provide any of their own support, therefore Sara is eligible
for claiming child tax credit amounted to $1,000 per her qualifying child (i.e. $1,000*2 =
$2,000). She can claim $2,000 for child tax credit which is within the limits of tax of $2,155.
The maximum limit for child tax credit starts phase out in case of married filling separately at
$55,000 but as in this case, Sara's wages is $40,000 (less than $55,000) there will be no phase
out.
Thus Sara's child tax credit is $2,000.
Therefore the correct option is b)2,000.

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sara is married and loved all year with her husband and two children.pdf

  • 1. sara is married and loved all year with her husband and two children. she will filt married filling separately and claim her two children as dependants. her son Glen, born may 1 2010 and her daughter, rona, born December 25 2000 are birth us citizens and did not provide any of their own support. Sara's wages were 40000 and she had no other income. her tax is 2155. Sara's child tax credit is: a) 2155 b) 2000 c) 0 d) 1000 Solution The child tax credit is allowed as $1,000 per qualifying child but limited to amount of tax. A qualifying child must have been under age 17 - age 16 or younger at the end of 2010. Child may either be son or daughter for which a person can claim child tax credit. For claiming child tax credit, the child must not have provided more than half of their own support. In the given case, Sara's son Glen and her daughter Rona, both are under younger than age of 16 at the end of 2010 and they did not provide any of their own support, therefore Sara is eligible for claiming child tax credit amounted to $1,000 per her qualifying child (i.e. $1,000*2 = $2,000). She can claim $2,000 for child tax credit which is within the limits of tax of $2,155. The maximum limit for child tax credit starts phase out in case of married filling separately at $55,000 but as in this case, Sara's wages is $40,000 (less than $55,000) there will be no phase out. Thus Sara's child tax credit is $2,000. Therefore the correct option is b)2,000.