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How is amount calculated for the child tax credit? I made more than the required 2500 in E.I. The amount of taxes I owe zeroed out but how only $89-CTC and $6-additional

 
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2 Replies
Vanessa A
Expert Alumni

How is amount calculated for the child tax credit? I made more than the required 2500 in E.I. The amount of taxes I owe zeroed out but how only $89-CTC and $6-additional

The CTC is limited to your tax liability. The additional child tax credit is calculated by taking subtracting $2,500 from your income and then multiplying that number by 15%.  If you do not have more than $2,500 of eligible income, you would not qualify for the Additional Child Tax Credit.  So if your total income was $3,350 then you would have an additional child tax credit of $127.50

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How is amount calculated for the child tax credit? I made more than the required 2500 in E.I. The amount of taxes I owe zeroed out but how only $89-CTC and $6-additional

The total per child is $2000.   First the $2000 is used to reduce your tax owed down to zero.  When (if) your tax owed is zero, the "rest" of the $2000 can be added to your refund as the Additional Child Tax Credit----up to a maximum of $1600 per child.  But....that Additional Child Tax Credit also depends on how much you earned by working.  

 

Take the amount you earned, subtract $2500, and multiply what is left by 15%.  That is your additional child tax credit ---- up to a maximum of $1600 per child.

 

 

Look at your 2023 Form 1040 to see the child-related credits you received

 

PREVIEW 1040

https://ttlc.intuit.com/questions/1901539-how-do-i-preview-my-turbotax-online-return-before-filing

 

Child Tax Credit line 19

Credit for Other Dependents line 19

Earned Income Credit line 27

Additional Child Tax Credit line 28

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
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