Demeter is a single taxpayer. Her AGI in 2019 is $209,200. Demeter may claim a child tax credit for her daughter Persephone. What amount of child tax credit is Demeter entitled to claim after any applicable phase-out?
What will be an ideal response?
$1,500.
$2,000 - 500 phase-out (see below).
Phase-out is $500, computed as follows:
| Description | Amount | Reference | ||
| (1) | AGI | $ | 209,200 | |
| (2) | Threshold amount for single taxpayer | 200,000 | ||
| (3) | AGI in excess of threshold | 9,200 | (1) - (2). | |
| (4) | Number of thousands above threshold (rounded up) | 10 | (3) / 1,000, round up to next whole number | |
| Phase-out amount | $ | 500 | (4) × $50 | |
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