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When i went to file my taxes it showed the 1,700 child tax credit plus the additional amount. Then i entered my retirement contribution and it dropped the child credit

 
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Accepted Solutions
JohnB5677
Expert Alumni

When i went to file my taxes it showed the 1,700 child tax credit plus the additional amount. Then i entered my retirement contribution and it dropped the child credit

That could happen as a result of the retirement contributions.

The Child Tax Credit if a Non-Refundable tax credit.  

  • That means it will only reduce your taxes down to zero.  
  • Once the total taxes owed (not your refund or amount of excess owed)  the credit will stop.
  • Your retirement contribution reduced the taxes you owed, so you got less Child tax Credit.
  • The additional Child Tax Credit is capped at $1,700.

 

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1 Reply
JohnB5677
Expert Alumni

When i went to file my taxes it showed the 1,700 child tax credit plus the additional amount. Then i entered my retirement contribution and it dropped the child credit

That could happen as a result of the retirement contributions.

The Child Tax Credit if a Non-Refundable tax credit.  

  • That means it will only reduce your taxes down to zero.  
  • Once the total taxes owed (not your refund or amount of excess owed)  the credit will stop.
  • Your retirement contribution reduced the taxes you owed, so you got less Child tax Credit.
  • The additional Child Tax Credit is capped at $1,700.

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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