Intuit Academy Tax Practice Exam 2025 - Free Tax Practice Questions and Study Guide

The correct answer is that the child tax credit for the tax year 2022 provides a credit of $2,000 per qualifying child with income phaseouts. This means that for each child that meets the criteria, taxpayers may claim a credit of up to $2,000. However, this credit begins to phase out for higher-income earners, specifically starting at adjusted gross income levels of $200,000 for single filers and $400,000 for married couples filing jointly. This structure is designed to provide benefits specifically to families within a certain income bracket, ensuring that those with lower incomes receive the full benefit of the credit.

Additionally, while the child tax credit has some refundable elements, depending on income level and tax circumstances, it is not fully refundable for everyone. Moreover, the credit is not solely based on the number of children without considering specific qualifications, as each child must meet eligibility requirements to qualify for the $2,000 credit. Therefore, the structured phaseout and specific eligibility requirements highlight the designed intent of the credit to support families effectively while still being mindful of higher earners.