Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 02-15-2009, 02:44 PM
Junior Member
 
Join Date: Feb 2009
Posts: 2
Child tax credit

I have 3 kids and am only receiving $1192 child tax credit. It says it is because my tax liability is less than full credit amount. What does that mean?



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 02-15-2009, 03:34 PM
TaxGuru's Avatar
Tax Guru
 
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 2,417
Blog Entries: 3
Although the Child Tax Credit is $1,000 per child, this tax credit has some limitations These limitations are as follows;

1.The Child Tax 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:

• Married Filing Jointly $110,000
• Married Filing Separately $55,000
• All others $75,000

2.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.
Thus, for example, let us assume you have 2 qualifying children, therefore you are entitled to claim $2,000 ( 2 x $1,000) in child care credit. Let us assume that you meet the adjusted gross income test (Point 1 above) but your tax liability is only $2,500 and you have withheld only $1,500. You are only entitled to claim $1,000 in Child Tax Credit (the lesser of $2,000 or $2,500 -$1,500). In other words, if you did not have a tax liability you would not be entitled to any child tax credit.

__________________
Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #3 (permalink)  
Old 01-05-2011, 04:03 AM
Banned
 
Join Date: Dec 2010
Posts: 17
A child tax credit is a tax credit that may depend on the number of dependent children in a family. The credit may depend on other factors as well: typically it depends on income level. For example, in the United States, only families making less than $110K per year may claim the full credit. In many US counties the median family income is more than $110K per year, so the income level of the family is a larger consideration than the number of children. For example, in 2009, the majority of families in Loudoun County made $110,600 or more and would therefore not receive the full credit. Similarly, in the United Kingdom the tax credit is only available for families making less than £58,000 per year.
---------------------------------
Earl Nunes



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Claiming the Child Tax Credit Samatg General 1 02-06-2009 12:36 AM
Does cost of day camp count as a qualified exp towards child & dependent care credit? mabalone Tax Credit 1 07-21-2008 11:12 PM
Who is eligible to claim a Child Tax Credit in 2007? TaxGuru Tax Credit 0 03-05-2008 08:02 PM
Is the child support considered income when calculating the earned income credit? aron Income 1 09-16-2007 10:50 AM
Claiming the Child and Dependent Care Credit Samatg General 0 03-15-2007 07:50 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.