Home | Tax Blog | Tax Evaluation | Resources | Common Tax Questions | Back Taxes | Contact Us

Deducting Dependents #1: Claiming Your Child Tax Credit

September 15th

child tax creditThere is good news for American parents. The Internal Revenue Service have announced that the child tax credit is due to remain at the $1,000-per-child level through the 2012 tax year. Parents do not even have to file any additional forms; the only requirement is that the correct amount is entered directly on the Form 1040 or 1040A.

However, parents must still fill out a work sheet beforehand to determine the correct amount owed and to avoid potential tax audits. For parents seeking to claim the additional child tax credit, there will be more paperwork required.


Qualifying for the Child Tax Credit

First and foremost, children must be below the age of 16 at the end of the tax year in order to qualify for the child tax credit.

The IRS will also consider the income made by all adults in the household when deciding if you are eligible. The most money is available to married couples who make less than $110,000, or to those who file as the head of household and make less than $75,000. At these levels and above, the tax credit amount begins to fall.

Also, those who already claim other tax credits may not be eligible for as much of the child tax credit. If you are unsure regarding your eligibility, contact a qualified tax lawyer for assistance. You can also consult IRS Publication 972, Child Tax Credit.

Potential Drawbacks

Unfortunately, while the tax credit may be used to erase your tax bill, it cannot be used to get you a refund. This means that it is useful for alleviating the tax burden, but for those who already owe back taxes, it is not the most efficient means of recouping losses.

Parents with more than one child under the age of 16, however, are eligible for further potential credits. Additional child tax credits typically amount to 15 percent of your total taxable income over $3,000.



Subscribe Now

Follow on FaceBook
News & Events
Monday, August 01, 2011

We are excited to launch our new site LeeTaxHelp.com.
Monday, September 05, 2011

If you think you might be need the advice of a Dallas Bankruptcy Attorney you can view on sister site at http://leebankruptcy.com
Back Taxes (5) General Tax Information (65) News (39) Payroll Taxes (5) Tax audit (10) Tax Debts (3) Tax deductions (16) Tax Fraud (4) Tax Laws (14) Tax Liens (10) Tax payment plans (14) Tax programs (21) Tax Scams (6) Uncategorized (2)
Recent Posts
Advantages of Using a Tax Debt Lawyer
Tax Debt Relief In 2014
Tax Debt Installment Agreements
Understanding the Five Tax Debt Strategies
Back Taxes: What You Can Do
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011