Question

Interview Notes Christopher and his wife Amanda have lived in the United States since 2012 and have Individual Taxpayer Identification Numbers (ITINs). Christopher is 45 and Amanda is 40. They have been married since 2000. They both worked in 2018 and their combined wages for the year were $40,000. They have one child, Jennifer, who is 3 years old and lived with them all year. Jennifer is a U.S. citizen and has a valid Social Security number. In order for them to work, they paid $5,000 in daycare for Jennifer. The statement from the daycare provider includes the provider's name, address, valid Employer Identification Number, and the amount paid for Jennifer's care. Christopher and Amanda provided all the support for Jennifer and all the costs of keeping up their home. 7. Christopher and Amanda can claim Jennifer as a qualifying child for the earned income credit (EIC).

True False

Interview Notes Christopher and his wife Amanda have lived in the United States since 2012 and have Individual Taxpayer Identification Numbers (ITINs). Christopher is 45 and Amanda is 40. They have been married since 2000. They both worked in 2018 and their combined wages for the year were $40,000. They have one child, Jennifer, who is 3 years old and lived with them all year. Jennifer is a U.S. citizen and has a valid Social Security number. In order for them to work, they paid $5,000 in daycare for Jennifer. The statement from the daycare provider includes the provider's name, address, valid Employer Identification Number, and the amount paid for Jennifer's care. Christopher and Amanda provided all the support for Jennifer and all the costs of keeping up their home. 8. Jennifer is a qualifying child for the child tax credit.

True False

Answer 1

7. True

They can claim Jennifer as their qualifying child for earned income credit but as they don't have SSN, they cannot claim EIC

If a couple is filling joint return, and there income is below $46,010, they can claim earned income credit if they have valid social security number.

Earned income credit is for low to moderate income group individuals, particularly with qualifying child

Qualifying child is one who meet all the requirement of relationship, age and shared residence.

In this case, Jennifer is Christopher and Amanda's daughter, and is 3 years old and live with them, thus satisfy all the requirements of qualifying child.

Their income is $40000 which is below $46,010 but they don't have valid social security number so they cannot claim earned income credit.

8. True

Child tax credit is tax relief given to all the taxpayer, with qualifying child under the age of 17. for each qualifying child.

Qualifying child is one who is US citizen and lived with the parents for more than half of the year and is claimed as dependent on parent's return.

Jennifer is U.S. citizen and in under the age of 17 years (she is 3 years old) and live with her parent and dependent on their return.

Thus, she qualify for child tax credit