Question

Ron (45) and Sue (45) are married. Their sons, Kyle (18) and Keith (14), lived with them all year, and the boys received more than 50% of their support from their parents. Ron’s wages were $52,000; Sue’s wages were $38,750; Kyle’s gross income was $7,200; Keith’s was $350.

Do ron and sue meet the qualifications for claiming the child tax credit/additional child tax credit or the credit for other dependents? choose the best answer:

a) ron and sue may claim both the child tax credit and the credit for other dependents

b) ron and sue may only claim the credit for other dependents

c) ron and sue may only claim the child tax credit

Answer 1

Ans : a) Ron and sue may claim both the child tax credit and credit for other dependents

Child tax credit/additional child tax credit:

The parents qualify to avail credit if their Modified Gross Adjusted income is below:

• $ 400,000 if they are filing jointly or
• $ 200,000 for others

Necessary conditions to be satisfied for availing the credit are as follows:

• the child must be under age of 17 ie, 16 years or younger.
• must be a resident alien /US citizen/ US national
• must have lived with parent for at least half the year
• the child must have received more than half of his support from the parents

In the given case, Ron and Sue can claim child tax credit for the only one child ie, Keith(14)

Credit for other dependents

For dependents other than children of age 16 yrs or younger, the parents can still claim credit for other dependents of $ 500 as per the new provision.

This credit may be availed for children age 17 or above who does not provide more than half of their own support for the year.

They can claim the credit for other dependent for Kyle (18)