Amy Brown files as head of household and has two dependent children under age 17. The children are qualifying children for purposes of the child tax credit. Amy's only income is her salary of $30,350. Amy chooses to itemize her deductions and files Form 1040. Her AGI, shown on line 38 of her Form 1040, is $30,350. This is her taxable earned income.
Amy does not file Form 2555, 2555-EZ, or 4563. She does not exclude income from Puerto Rico. Her modified AGI is $30,350.
Amy's tax, shown on line 46 of her Form 1040, is $1,334. She claims a $225 credit for child and dependent care expenses on line 48. She claims a $1,029 earned income credit on line 64a. She has no other credits.
After answering the Questions in the Form 1040 instructions for line 52, she completes the child tax credit worksheet to figure her child tax credit of $1,109. Amy's completed questions and child tax credit worksheet are shown later.
Amy reads the TIP
in the worksheet and finds that she may be able to take the additional child tax credit. See Additional Child Tax Credit
and Amy's completed Form 8812, later.