Tag: additional child tax credit

If you can claim the additional child tax credit, you’re tax refund will increase.

Posts Tagged ‘additional child tax credit’

How to Qualify for the Additional Child Tax Credit

Posted by Robert Flanagan on February 1, 2017
Last modified: February 1, 2017

Feel like the coach of a small football team? The IRS gets it!

Whether you have just one on the way or five and counting, kids are expensive. That’s why you should take advantage of tax cuts whenever possible. In addition to claiming them as dependents, you may also qualify for some other credits. One that could end up benefiting you substantially is the Additional Child Tax Credit. Let’s see if this one is for you!

What is the Additional Child Tax Credit (VS. the Child Tax Credit)?

You’ve probably heard of the Child Tax Credit. I’ll sum it up for those of you who don’t (but also check out our other article which goes into more detail, “How to Claim the Child Tax Credit”). Basically, it is a credit that can reduce your tax liability up to $1,000 per qualifying child listed on your tax return. This credit is NON-refundable, meaning that it will reduce your tax liability to $0 but will never overflow into a refund for you.

Now that we’ve covered the Child Tax Credit, you’re probably wondering what the Additional Child Tax Credit is all about, right? This is the refundable credit that will fork over the difference that you weren’t able to claim from the Child Tax Credit.   

Let’s take a look at an example:

Cindy and Lou have three qualifying kids listed on their joint tax return. Their tax liability is $2,500. After applying their Child Tax Credit at $1,000 per child, they were able to get their tax liability down to $0. They then figured out that they qualified for the Additional Child Tax Credit. Cindy and Lou were able to claim that additional $500 as a tax refund!

Here’s the math:  $2,500 IRS tax liability – $3,000 total Child Tax Credit for three kids = – $500 (more…)

How to Claim the Child Tax Credit

Posted by Robert Flanagan on October 27, 2016
Last modified: October 28, 2016

Parents deserve a bit of a (tax) break now and then.

As a busy parent, filing taxes can be found on the To-Do list between Monday’s soccer practice and Thursday’s parent-teacher conference. Do yourself a favor this year and see if you are eligible for the Child Tax Credit. Tax credits are great because, unlike deductions, they reduce your tax bill dollar-for-dollar. That means, a larger tax refund for you and your family!

What is the Child Tax Credit?

The Child Tax Credit offers a credit of up to $1,000 per child to qualifying taxpayers. It is only available to those who can claim a child as a dependent and meet several other requirements.

There is no limit to the number of children you can claim using the Child Tax Credit, however, claiming lots of kids may subject you to the Alternative Minimum Tax (AMT).

Who can claim the Child Tax Credit?

In order to claim the Child Tax Credit, the child in question must: (more…)

What Is The 2013 Child Tax Credit & Additional Child Tax Credit?

Posted by Emma Lawrence on January 30, 2014
Last modified: March 21, 2017

The 2014 tax season is here and you may be wondering what federal tax credits you’re eligible for on your 2013 taxes.

If your children are under 17, don’t forget to claim the 2013 child tax credit. The credit allows up to $1000 (per qualifying child), to be subtracted from the income tax you owe. If you are taking the 2013 child tax credit, you may be able to claim the additional child tax credit and receive a tax refund.

If you qualify for the child tax credit, you can claim it and avoid the hassle of extra paperwork (which often goes along with claiming it), by filing your taxes on RapidTax.

What is the Child Tax Credit and Who Qualifies?

The child tax credit is a federal tax credit up to $1000 per child, for individuals with a qualifying child (or children), under age 17. To receive the child tax credit, you must meet six requirements, provided by the IRS.  The requirements to claim the 2013 child tax credit are as follows;

  1. The credit may only be for a qualifying child.
  2. The child must have been 16 years old or younger at the end of 2013.
  3. You must provide at least half of the child’s support.
  4. You must claim the child as your dependent on your federal taxes.
  5. The child must be a U.S. citizen, U.S. national or U.S. resident alien.
  6. The child must have lived with you more than half of 2013.

What is the child tax credit phase out?

If you meet the requirements (listed above), the 2013 child  tax credit amount can be up to $1,000 per child. Don’t get too excited about the extra $1000, the total amount you can claim depends on your modified adjusted gross income, meaning there are income phaseouts.

To make life easier, RapidTax has created an income phase out chart to refer back to when filing your 2013 taxes. The charts below explain the income child tax credit phase outs (income levels above the stated, receive a smaller child tax credit) along with the child tax credit amounts, based on how many children you are claiming.

2013 Child Tax Credit

What is the additional child tax credit? Can I get a refund?

The additional child tax credit is any child tax credit amount which is refunded, due to the credit being excess to a person’s tax liability. Basically, if you want to take the child tax credit and realize you don’t have any tax due, you will instead tax the additional child tax credit (and receive a refund). The table below will help you understand the 2013 child tax credit you’ll receive this year.

2013 Additional Child Tax Credit

Filing your taxes and claiming the child tax credit doesn’t necessarily have to be a complicated process. Claiming the child tax credit 2013 is straightforward and simple when filing your taxes on RapidTax. Tax season 2014 is here, file today!

1/30/2014