Thoughts, Ideas, and Concepts by Sandra Parks

CHILD TAX CREDIT

The child tax credit allows taxpayers to claim a tax credit of up to $1,000 per qualifying child under the age of 17. This reduces their tax liability, potentially to $0. In order to claim the credit, the taxpayer and child must meet numerous requirements.

When a taxpayer’s child tax credit is more than their tax liability, they may be eligible to claim an additional child tax credit as well as the child tax credit. The additional child tax credit is also a tax credit of up to $1,000 per qualifying child. This further reduces their tax liability and can result in a refund. Taxpayers must meet additional requirements to claim this credit.

  1. The child tax credit is a nonrefundable tax credit.
  • A. True
  • B. False
  1. Shane is a 17 year old US citizen who lives with his mother and is supported by her. Shane qualifies for the child tax credit.
  • A. True
  • B. False
  1. Brad has two children who qualify for the child tax credit. Brad’s modified adjusted gross income is $54,000 and his tax liability is $3000.
    Brad is eligible to take the full credit of $1,000 per child.
  • A. True
  • B. False
  1. Deb and Doug have one child who qualifies for the child tax credit. Their income is $66,000 and their tax liability is $5,000.
    Deb and Doug are eligible for the additional child tax credit.
  • A. True
  • B. False

For more information please visit http://saptaxes.net or contact me at 972.569.7938

Thanks!

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