What is the amount of the Child Tax Credit for a couple with an adjusted gross income of $160,000 and a 9-year-old child?

What is the amount of the Child Tax Credit for a couple with an adjusted gross income of $160,000 and a 9-year-old child?

• A. $2,000
• B. $2,500
• C. $3,000
• D. $3,600

Answer: (B)

The Child Tax Credit for the 2021 tax year is structured to provide significant financial assistance to families with qualifying children. For a couple with an adjusted gross income (AGI) of $160,000, the standard credit amount per qualifying child is generally $2,000. However, the enhanced Child Tax Credit that was implemented for the 2021 tax year allowed for an additional amount for children under 6 and extended the benefit for children aged 6 to 17. For the age range in question, the 9-year-old child would qualify for the standard $2,000 credit. It's essential to see that the higher amounts (like $2,500, $3,000, or $3,600) stem from the one-time expansion, but based on the AGI and the age of the child—the couple would not receive the maximum benefit of $3,600 or even $3,000. Thus, the correct amount of the Child Tax Credit for this scenario is indeed $2,000, as it is the amount applicable for a child aged 17 and under for taxpayers with an AGI of $160,000.

The Child Tax Credit for the 2021 tax year is structured to provide significant financial assistance to families with qualifying children. For a couple with an adjusted gross income (AGI) of $160,000, the standard credit amount per qualifying child is generally $2,000.

However, the enhanced Child Tax Credit that was implemented for the 2021 tax year allowed for an additional amount for children under 6 and extended the benefit for children aged 6 to 17. For the age range in question, the 9-year-old child would qualify for the standard $2,000 credit.

It's essential to see that the higher amounts (like $2,500, $3,000, or $3,600) stem from the one-time expansion, but based on the AGI and the age of the child—the couple would not receive the maximum benefit of $3,600 or even $3,000.

Thus, the correct amount of the Child Tax Credit for this scenario is indeed $2,000, as it is the amount applicable for a child aged 17 and under for taxpayers with an AGI of $160,000.