This year the child tax credit has been increased. The reason for the increase is mainly due to the increased cost to raise children and to stimulate the economy. This credit is separate from your personal child exemption that you normally take and is a great way to get some money back.
The total amount that can be received for the child tax credit is a maximum of $1,000.00 per qualifying child. A qualifying child must be under 17 before the end of the tax year and be a resident or citizen of the United States.
If you will not be obliged to pay any tax, you can qualify for the refund if you meet other required set standards. One area of change is the income upper limit; it has been reduced from 8,500 to 3,000 for this tax year. In other words if you have one or more eligible children and have an AGI of more than 3,000, you may qualify for the refund.
If your Adjusted Gross Income (AGI) is above any of the following amount your must reduce your child tax credit;
*Married filing jointly up to $110,000.00 *Single, qualifying widow(er), or head of household up to $75,000.00 *Married filing separately up to $55,000.00
If your AGI exceeds any of the amounts listed for your filling status don't get discouraged you may still get some of the tax credit. Subtract the maximum limit from your AGI. Then take this amount and divide by 1000.00. Take this answer and multiple it by 50.00. This is the amount you will subtract from the 1000.00 tax credit. If the amount is positive this will be your tax credit, if the amount is negative than no tax credit is allowed.
If you do not have enough tax to reduce then no child tax credit can be taken. If you see a lower amount than the full $1,000.00 credit then you should check to see if you qualify for the additional child tax credit.
The additional tax credit is for certain individuals that get less than the full child tax credit. The additional child tax credit may give you a refund even if you don't owe any taxes.
The total amount that can be received for the child tax credit is a maximum of $1,000.00 per qualifying child. A qualifying child must be under 17 before the end of the tax year and be a resident or citizen of the United States.
If you will not be obliged to pay any tax, you can qualify for the refund if you meet other required set standards. One area of change is the income upper limit; it has been reduced from 8,500 to 3,000 for this tax year. In other words if you have one or more eligible children and have an AGI of more than 3,000, you may qualify for the refund.
If your Adjusted Gross Income (AGI) is above any of the following amount your must reduce your child tax credit;
*Married filing jointly up to $110,000.00 *Single, qualifying widow(er), or head of household up to $75,000.00 *Married filing separately up to $55,000.00
If your AGI exceeds any of the amounts listed for your filling status don't get discouraged you may still get some of the tax credit. Subtract the maximum limit from your AGI. Then take this amount and divide by 1000.00. Take this answer and multiple it by 50.00. This is the amount you will subtract from the 1000.00 tax credit. If the amount is positive this will be your tax credit, if the amount is negative than no tax credit is allowed.
If you do not have enough tax to reduce then no child tax credit can be taken. If you see a lower amount than the full $1,000.00 credit then you should check to see if you qualify for the additional child tax credit.
The additional tax credit is for certain individuals that get less than the full child tax credit. The additional child tax credit may give you a refund even if you don't owe any taxes.