What can cause the Child Tax Credit to be reduced for single parents?

The Child Tax Credit is subject to certain eligibility criteria that include income limits. When a single parent’s adjusted gross income (AGI) exceeds these limits, it can lead to a reduction in the amount of the Child Tax Credit they may claim. The income thresholds are established by the tax code, and as a taxpayer's AGI increases beyond these limits, the credit amount gradually phases out. This means that while a single parent might initially qualify for a full or partial credit, excess income can diminish or eliminate their eligibility for the Child Tax Credit.

The other choices, while they pertain to personal circumstances or scenarios that might impact a parent's finances, do not directly affect the credit in the same regulatory manner as exceeding the AGI limits does. For example, having one child does not reduce the credit; instead, the parent may still qualify based on other factors. Similarly, the amount of time spent working or the number of jobs a parent has influences income but does not directly affect the credit unless it results in exceeding the AGI thresholds.