# Question & Answer: Trey claims a dependency exemption for both of his daughters, ages 14 and 17, at year-end. Trey files a joint r…..

Trey claims a dependency exemption for both of his daughters, ages 14 and 17, at year-end. Trey files a joint return with his wife. What amount of child credit will Trey be able to claim for his daughters under each of the following alternative situations? a. His AGI is \$104,000. b. His AGI is \$125,300. c. His AGI is \$130,600, and his daughters are ages 10 and 12.

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Question & Answer: Trey claims a dependency exemption for both of his daughters, ages 14 and 17, at year-end. Trey files a joint r…..
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a. Trey’s AGI is less than the limit of \$110,000 for a joint return. Trey has a \$1,000 tax credit (\$1,000 × 1 child under 17 years of age ). A child must be underage 17 to qualify for the child tax credit.

b. Below are the calculations

\$125,300 AGI – \$110,000 limit = \$15,300

\$15,300 excess AGI divided by 1,000 = 15.3 round off 16

16 × 50 = \$800. This amount is the phase-out.

\$1,000 allowable credit minus 800 = \$200