Question

Tim (40) and Tina (42) live in California. They have one son, Todd (age 10; Todd is a qualifying child of Tim and Tina). Tim’s brother, Bob, lives in New York. Although Bob did not live with Tim and Tina at all in 2020, Tim and Tina provided 90% of Bob's support. Bob is single and had $1,000 gross income in 2020.

What is the amount of Tim and Tina’s 2020 child tax credit (including other dependent tax credit)?

Assume that Tim and Tina's 2020 AGI is below the phaseout threshold for the child tax credit.

Answer 1

Child Tax Credit:

According to 2020, Child Tax Credit,an individual can get a tax credit worth of $2,000 per qualifying Child ,of which $1400 is refundable and $500 for dependent which is non refundable.

In order to be eligible for Child Tax Credit,

1) The Adjusted Gross Income should be below $200,000 for single and $400,000 for married.

2) The child should be of leass than or equal to 16 years of age at the end of the calender year.

3) Atleast half of the support has to be provided to the child during last year and child must have lived with you atleast half od the year.

4) The child cannot file a joint return except to claim refund.

Dependent Tax Credit:

To be eligible for dependent Tax credit

1) Dependent must be 12 or younger at the time of child care provided and there is

2) No age limit for other dependents but they should be mentally or physically incapable of self care and should have lived with you atleast for more than half year.

As per the given Data, Tim And Tina living in califoria has a son Their Adjusted Gross income is under the threshold limit. Todd aged 10 years that is less than the prescribed age of 16 years and also a qualified child living with them. So they are eligible for thaking the Child Tax credit of $2000 for their son.

It is also given that tim has a brother Bob who lives in Newyork away fromTim and Tina and having a gross Income of $1000.But they provide 90% support.

Since Bob is not living with Tim and Tom , they cannot get a dependent tax credit.

Hence, Tim and Tina's 2020 Child Tax Credit amount is $2000 and no Dependent tax credit is eligible.