Boyd and Susan are married filing jointly in 2019. They have three children for whom they may claim the child tax credit. Their AGI was $415,000. What amount of child tax credit may they claim on their 2019 tax return?

$5,250

Explanation:

The child tax credit provides a $2,000 tax credit for every qualifying child under 16, but the amount starts to phase out as the married couple's income is higher than $400,000.

The tax credit phases out $50 for every $1,000 of income over the $400,000 threshold: $415,000 - $400,000 = $15,000 x $50/$1000 = $750 phase out.

total child tax credit = ($2,000 x 3 children) - $750 = $6,000 - $750 = $5,250

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