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Why is my Child Tax Credit lower than my figures?

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Why is my Child Tax Credit lower than my figures?


Please note that the total of your credits (not including refundable credits like EIC) can not exceed the amount of tax due.

The regular Child Tax Credit is up to $2000 per child. Check to be sure that the Child Tax Credit box is checked on your return next to each dependent name. That particular dependent may not qualify for Child Tax Credit.

If you are eligible for the Additional Child Tax Credit, please make sure all of that information is correctly entered. Our software will calculate this for you based on the information you enter during the interview.

Remember, the best way to clarify your situation is to open your pdf forms and review those first.  If you still believe it is incorrect or cannot figure out the problem, contact customer service and we will be glad to help.

Ten Facts about the Child Tax Credit

The Child Tax Credit is an important tax credit that may be worth as much as $2,000 per qualifying child depending upon your income. Here are 10 important facts from the IRS about this credit and how it may benefit your family.

  1. Amount - With the Child Tax Credit, you may be able to reduce your federal income tax by up to $2,000 for each qualifying child under the age of 17.

  2. Qualification - A qualifying child for this credit is someone who meets the qualifying criteria of six tests: age, relationship, support, dependent, citizenship, and residence.

  3. Age Test - To qualify, a child must have been under age 17 – age 16 or younger – at the end of the tax year.

  4. Relationship Test - To claim a child for purposes of the Child Tax Credit, they must either be your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister or a descendant of any of these individuals, which includes your grandchild, niece or nephew. An adopted child is always treated as your own child. An adopted child includes a child lawfully placed with you for legal adoption.

  5. Support Test - In order to claim a child for this credit, the child must not have provided more than half of their own support.

  6. Dependent Test - You must claim the child as a dependent on your federal tax return.

  7. Citizenship Test - To meet the citizenship test, the child must be a U.S. citizen, U.S. national, or U.S. resident alien.

  8. Residence Test - The child must have lived with you for more than half of the tax year. There are some exceptions to the residence test, which can be found in IRS Publication 972, Child Tax Credit.

  9. Limitations - The credit is limited if your modified adjusted gross income is above a certain amount. The amount at which this phase-out begins varies depending on your filing status. For married taxpayers filing a joint return, the phase-out begins at $400,000. For married taxpayers filing a separate return, it begins at $200,000. For all other taxpayers, the phase-out begins at $200,000. In addition, the Child Tax Credit is generally limited by the amount of the income tax you owe as well as any alternative minimum tax you owe.

  10. Additional Child Tax Credit - If the amount of your Child Tax Credit is greater than the amount of income tax you owe, you may be able to claim the Additional Child Tax Credit.

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Views: 1699 Created on: Jun 15, 2013
Date updated: Dec 03, 2020
Posted in: Credits

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