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Can I file all 5 of my kids or just 3 and will I get something back if I can file all 5?

 
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DanielV01
Expert Alumni

Can I file all 5 of my kids or just 3 and will I get something back if I can file all 5?

It depends.  The answer to this question has a lot to do with your income.  The more income you have, the more likely that you will have noticeable tax savings for your return.  Here are the different credits you face:

  1. Child Tax Credit.  The Child Tax Credit is $1000/child 16 years of age and younger, but is limited to the amount of tax due after your deductions and exemptions have been calculated.  However, what is not used as Child Tax Credit may be used as
  2. Additional Child Tax Credit.  This credit potentially makes any unclaimed Child Tax Credit refundable, which means that even if you have a zero tax liability, your Additional Child Tax Credit will still be refunded to you.  How much you receive is affected by how much income you had.  The general rule is that your Additional Child Tax Credit is the (amount of your Earned Income minus $3000) multiplied by 15%.  If you had 30,000 of earned income, with a tax liability of zero, your Additional Child Tax Credit is (30,000-3,000, which equals 27000*15%.  The amount of Additional Child tax Credit is limited to $4050)
  3. Earned Income Credit.  Also calculated on Earned Income, the EITC curves upwards towards a maximum amount on 3 children maximum, and then goes down progressively.  Only up to 3 children can be claimed for this credit.

With lower income, you probably won't see larger benefits for claiming all 5 children on your return.  Therefore, if you live in the same house with someone who can legitimately claim some of your other children (must be an aunt/uncle, grandparent, or even an older brother or sister who has higher income than you do), you may choose to do so.  But if you have no others in the house to claim children or your income is high enough, then you are better off claiming them all.

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1 Reply
DanielV01
Expert Alumni

Can I file all 5 of my kids or just 3 and will I get something back if I can file all 5?

It depends.  The answer to this question has a lot to do with your income.  The more income you have, the more likely that you will have noticeable tax savings for your return.  Here are the different credits you face:

  1. Child Tax Credit.  The Child Tax Credit is $1000/child 16 years of age and younger, but is limited to the amount of tax due after your deductions and exemptions have been calculated.  However, what is not used as Child Tax Credit may be used as
  2. Additional Child Tax Credit.  This credit potentially makes any unclaimed Child Tax Credit refundable, which means that even if you have a zero tax liability, your Additional Child Tax Credit will still be refunded to you.  How much you receive is affected by how much income you had.  The general rule is that your Additional Child Tax Credit is the (amount of your Earned Income minus $3000) multiplied by 15%.  If you had 30,000 of earned income, with a tax liability of zero, your Additional Child Tax Credit is (30,000-3,000, which equals 27000*15%.  The amount of Additional Child tax Credit is limited to $4050)
  3. Earned Income Credit.  Also calculated on Earned Income, the EITC curves upwards towards a maximum amount on 3 children maximum, and then goes down progressively.  Only up to 3 children can be claimed for this credit.

With lower income, you probably won't see larger benefits for claiming all 5 children on your return.  Therefore, if you live in the same house with someone who can legitimately claim some of your other children (must be an aunt/uncle, grandparent, or even an older brother or sister who has higher income than you do), you may choose to do so.  But if you have no others in the house to claim children or your income is high enough, then you are better off claiming them all.

**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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