What income threshold limits eligibility for the Child Tax Credit for single filers?

What income threshold limits eligibility for the Child Tax Credit for single filers?

• A. $150,000
• B. $200,000
• C. $250,000
• D. $300,000

Answer: (B)

The threshold for eligibility for the Child Tax Credit for single filers is set at $200,000. This means that a single filer with a modified adjusted gross income (MAGI) exceeding this amount cannot claim the full amount of the Child Tax Credit. The credit begins to phase out for single filers when their MAGI reaches $200,000, reducing the credit amount for incomes over this threshold. This income limit is important for taxpayers to understand, as it directly affects their ability to benefit from the credit designed to assist families with children. The other income thresholds listed exceed the specified limit for single filers. Therefore, they would not be relevant in determining eligibility for the full Child Tax Credit. Understanding the precise income threshold helps taxpayers plan their finances and maximize their tax benefits appropriately.

The threshold for eligibility for the Child Tax Credit for single filers is set at $200,000. This means that a single filer with a modified adjusted gross income (MAGI) exceeding this amount cannot claim the full amount of the Child Tax Credit. The credit begins to phase out for single filers when their MAGI reaches $200,000, reducing the credit amount for incomes over this threshold. This income limit is important for taxpayers to understand, as it directly affects their ability to benefit from the credit designed to assist families with children.

The other income thresholds listed exceed the specified limit for single filers. Therefore, they would not be relevant in determining eligibility for the full Child Tax Credit. Understanding the precise income threshold helps taxpayers plan their finances and maximize their tax benefits appropriately.