This credit is for people who have a qualifying child as mentioned before.
Limits on the Credit
The maximum amount you can claim for the credit is 1,000 for each qualifying child.
However, you must reduce your child tax credit if either 1) or 2) applies.
1) The amount (on Form 1040, line 46; Form 1040A, line 28; or Form 1040NR, line 44) is less than the credit, you must reduce your credit.
2) The amount (on Form 1040, line 46; Form 1040A, line 28; or Form 1040NR, line 44) is zero, you cannot take this credit.
3) Your modified adjusted gross income (AGI) is above the amount shown below , you must reduce your credit:
110,000 (Married filing jointly), 75,000(Single, head of household, or qualifying widow), 55,000 (Married filing separately )
Here, MAGI is calculated by the following way:
Modified adjusted gross income = Adjusted gross income + Exclusion of income from Puerto Rico + Foreign Earned Income + Foreign Earned Income Exclusion + Exclusion of Income for Bona Fide Residents of American Samoa.
How much is your credit?
Worksheet 1: Child Tax Credit Worksheet (available at Form 1040, 1040A, 1040NR, or Publication 972)
Worksheet 2: Line 11 Worksheet (available at Form 8812 or Publication 972)
Worksheet 3: Earned Income Worksheet (available at Form 8812 or Publication 972)
You can just follow the worksheets and fill out each row step by step. Then put your final credit to Form 1040, 1040A,or 1040NR.
What's the additional child tax credit?
When you get less than the full amount of the child tax credit, you may get a refund under the Additional Child Tax Credit.
You can use Form 8812 to claim this credit. Please notice that "Line 4a -- Earned Income", you must recalculate your Earned Income by following the instructions in Form 8812, if these apply:
1) You are taking EIC
2) You are not taking EIC and not self-employed or filing Schedule SE as a member of the clergy or paid church employee, or filing Schedule C, or C-EZ as a statutory employee.
PSQ
Source: http://www.irs.gov
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