Question

QUESTION 6 of 10: The Federal income tax credit for dependent children doubled from $1,000 to $2,000 from 2017 to 2018. If the credit continued doubling each year, what would it be in 2020?

a) $4,000
b) $6,000
c) $8,000
d) $10,000

Answer 1

Explanation:

In 2020. For 2020, eligible taxpayers can claim a tax credit of $2,000 per qualifying dependent child under age 17. 6 If the amount of the credit exceeds the tax owed, then the taxpayer generally is entitled to a refund of the excess credit amount up to $1,400 per qualifying child.

Answer 2

The kid diminution provides a credit of up to $3,600 per child beneath age half-dozen and $3,000 per child from ages 6 to 17.

• If the credit exceeds taxes owed, families might receive the surplus quantity as a refund.
• The credit will be accessible sporadically throughout the year beginning as early as July, instead of as payment at tax time.
• previous law provided a baby diminution of up to $2,000 per child age sixteen and younger, with refunds restricted to $1,400 per child.
• These parameters are going to be in impact once more for 2022-2025.
• different dependents—including youngsters aged eighteen and regular faculty students ages 19–24—can receive a nonrefundable credit of up to $500 each.

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