Discussion:Child tax credit vs. additional child tax credit
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Discussion Forum Index --> Tax Questions --> Child tax credit vs. additional child tax credit
| 30 January 2007 | |
| Do I have to claim Child Tax Credit in order to claim Additional Child Tax Credit? In my situation, it seems if I don't claim Child Tax Credit then I can receive more refund through Additional Child Tax Credit. Is it legal to do this? | |
| 30 January 2007 | |
| They are both the same tax credit but calculated differently. the child tax credit is there and will reduce your tax to 0. After that, the calculation for the additional tax credit kicks in. That is the part that is considered a refundable credit and can be returned to you even when your tax liability is 0. | |
| 30 January 2007 | |
| I understand how the credits work. In my case, I have other credits to use to reduce my taxable income so I don't have to use child tax credit to reduce my taxable income. Neverthless, I still want to claim additional child tax credit to get cash refund. In the calcuation for additional child tax credit, I will get more cash refund if I don't take the credit tax credit in 1040 line 53.
Do you know if it's legal? | |
| January 30, 2007 | |
| Ypchao - The child tax credit needs to be figured first and then, if the tax is zero before using all of that credit, you would figure the additional child tax credit. When there are other credits, it's best to use tax software (or hire a tax professional) to figure the credits, unless you understand how to fill out the worksheets. | |
| 30 January 2007 | |
| Ypchao,
Yes. Use all your other available credits first (lines 47 thru 54), even contribute some cash to an IRA if you can to gain an additional credit (for example). Get your tax down as close to zero as you can with the other credits. THEN the additional child tax credit could POTENTIALY all flow to line 68. Then send me lunch! | |
| 30 January 2007 | |
| There's a specific order to the credits and the Child Tax Credit is usually one of the first that is taken. You don't get a choice. | |
| 17 February 2008 | |
| I have a question from my tax studies. I spent a lot of time researching the topic and finally have to give up. I am begging you to help.
Mary is a single mother of a 2 year old child. She worked part time and earned $16,750 for 2006. Her federal tax liability for 2006 is $0. How much of the child tax credit may she claim as a REFUNDABLE credit? 1. $0 2. $600 3. $817.50 4. $1,000 | |
| 17 February 2008 | |
| Virginia, what is your tentative answer and reasoning behind the answer? | |
| 17 February 2008 | |
| Sandy,
I think it's "oy vey" and I had no clue Baptists were bilingual! Tom | |
| 17 February 2008 | |
| hehehehe; well this Baptised Baptist at least knows a bit of Oriental, Russian, German, French and Spanish...but usually they are words that are not appropriate for either a Baptist or an open forum....thanks for the clarification..oy vay gave me a spell check error....CHOW...hehe or is it ciao? ♥ | |
| 17 February 2008 | |
| oops and Baptised should be Baptized ♥ hehehehe; now I am really bad..... | |
| 17 February 2008 | |
| No help? Thanks anyway :)
The right answer is 3. $817.50. 16,750 -11,300 * 15% = 817,5 The reason it took me so long is because initially I used 11,750 (an amount adjusted for inflation for 2007) instead 11,300 (for 2006)to figure out her Additional CTC. | |
| 17 February 2008 | |
| Virginia,
Boy, I hate to take my darn soapbox out again, but please read this: Discussion:Homework Assignments Kevin was right to attempt to get a tentative answer out of you and ask for your reasons behind it. You need to work through the problems to get the answer. Now you know the answer and the reasons and I also doubt you will make the mistake the next time. It works for me. We are here to help, but at this time of year, homework questions are not going to get answered unless we are in the mood and given the tremendous pressure many of us are under, you have to understand, as well as the rest of you accounting/tax/business/DIY'ers out there, we may just: Ignore you; express frustration by seeing Baptists using misspelled Yiddish expressions; want to strangle you; have Kevin go on about wanting to kill kittens or run over you with a fast elephant. It depends on our mood which option we so choose. Putting my soapbox away. Tom | |
| 18 February 2008 | |
| Taocpa, you are right. I was kind of desperate and not aware of whats going on here... | |
Rgtaxservice (talk|edits) said: | 18 February 2008 |
| Gosix, can she a get life line? | |
