Question

Cindy is 35, and has one child. She is eligible to file as head of household. What is the minimum gross income that would require her to file a federal income tax return for the 2020 tax year?

Answer 1

Child is a qualifying person for Child Tax Credit purposes.

The maximum Child Tax Credit for 2019 is $2000 per child. The credit is subject to an income limitation. The income limit on the Child Tax Credit is based on your modified adjusted gross income (MAGI). If your MAGI amount for 2019 falls between certain dollar limits, your credit is subject to a phaseout (is reduced or eliminated). For tax year 2019, the MAGI phaseout begins at:

• Married filing jointly – $400,000
• Single, head of household, married filing separately or qualifying widow(er) – $200,000

Thus, if your MAGI amount is below the MAGI phaseout for your filing status for 2019, your credit will not be affected by the MAGI phaseout. If your MAGI amount is above the MAGI phaseout, your credit or exclusion may be reduced. You must use the worksheet found in the instructions of your tax return.

You may be eligible to claim the Additional Child Tax Credit. If you have any of the credit left after reducing your tax, the remainder might be refundable. To determine if you are eligible, complete the Child Tax Credit and Credit for Other Dependents Worksheet in the instructions of your tax return. The worksheet will determine if you should complete Schedule 8812 to see if you are eligible for the refundable portion of the credit.

Minimum Gross amount required for filing federal income tax is $12,000

Since cindy has chil dependent on her, she can claim tax benefit of $2000

therefore gross amount required for filing income tax is $12000+2000 = $14000