How is child tax credit calculated
for line 19 of form 1040? If I’m head of household with one dependent, how much should the credit be? One software says $600 and another says $850. How are they calculated?
Thanks
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For the child tax credit of $2,000 per child.
The child must have been no older than 16 at the end of 2020.
The amount of child tax credit you can receive is limited by your taxable income (1040 line 15)
If your taxable income is zero, then you are not eligible for any child tax credit.
However, if you do not qualify for the Child Tax Credit, and if your earned income is greater than $2,500, you might be eligible for the Additional Child Tax credit. That amount is 15% of earned income greater then $2,500 up to a maximum of $1,400.
Too high of an income will reduce or eliminate the CTC also.
Married Filing Joint - $400,000
Single, Head of Household, or Married Filing Separate-- $200,000
The child tax credit will be reported on lone 19 on the 1040 form. Additional Child tax credit on line 28 on the 1040 form.
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