Child Tax Credit Calculator
One of the most common credits that a taxpayer can claim is the Child Tax Credit. The child has to be under the age of 17. The child can also be a stepchild or a foster child. |
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The amount was originally $400 per child in 1998. It has increased to $1,000 until the year 2010. However by 2011, it may come down to $500. Please note that if the taxpayer’s income is over the threshold, then there will be a decrease of $50 for every $1,000 that is over the limit. If your gross income is above $75,000, then you can start expecting the decrease. For married couple, it is $110,000; and for couples who have filed separately, it is $55,000.
In case you get to pay very little or zero taxes and your child tax credit is more than that, you can claim some of the difference under “Additional Child Tax Credit”. Again, the amount cannot exceed $1,000 for every child. You can calculate this amount using Form 8812.
There will be a worksheet with instructions for Form 1040. You can use it to calculate how much you will get by way of child tax credit. Remember, the credit cannot exceed the amount you pay in tax, and it cannot exceed the $1,000 limit enforced by the IRS.
You can use a free calculator provided online to calculate how much you are eligible for. You can use the one provided by Turbo Tax online. The HRBlock website also gives you an accurate online calculator. Check the year when you are using the calculator. Make sure it is updated.
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