Reducing modified adjusted gross income

[glaforest]

We fall $891 above the limit to qualify for the Child Tax Credit. If we contribute that amount (or more) to an IRA, will that reduce our modified AGI? If not, is there a way to lower our income from last year?

[Texas Roger]

In the case of child tax credit, an IRA contribution would lower the MAGI. 

Here is how MAGI affects the credit:

Child tax credit may be phased out for taxpayers whose modified adjusted gross income is above the limit for your filing status.

The limits are:

$110,000 for married filing jointly

$75,000 for single or head of household

$55,000 for married filing separately

The credit is reduced $50 for every $1000 of income (or part thereof) over the limit.