The child tax credit and additional child tax credits are different from the child and dependent care credit. The total amount that can be received for the child tax credit is a maximum of $1,000.00 per qualifying child. A qualifying child must be under 17 before the end of the tax year and be a resident or citizen of the United States. The child tax credit will reduce the amount of taxes you owe dollar for dollar.

The following is a list of income limits before you see a reduction in your child tax credit:

• If married & filing Jointly you can earn up to $110,000.00
• Single, qualifying widower, or head of household you can earn up to $75,000.00
• Married but filing separate you can earn up to $55,000.00

If your income exceeds the above limits than your credit will be reduced by $50.00 for every $1,000.00 that exceeds the income guidelines. You may also see a reduction in the full credit amount if you do not have enough tax to reduce. If you see a lower amount than the full $1,000.00 credit then you may qualify for the additional child tax credit.

The Child Tax credit will also help cover an alternative minimum tax that you may owe. If you have not paid enough taxes to meet the maximum allowable credit then you will not be due a refund. The Credit will reduce your bill to zero. The formula for the child tax credit can be somewhat confusing so we suggest using TurboTax tax-preparation software to assist you.

TurboTax Online offers all of the forms necessary to claim the child tax credit.