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taxwoman
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| Posted: 01 Apr 2009 at 20:44 | IP Logged
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Yes, this is true. The Child Tax Credit is a maximum of $1,000 per child, but is phased out as AGI is over certain income levels.
However, if a tp is not eligible for the full amount of the Child Tax Credit due to the income thresholds, they may be eligible for the Additional Child Tax Credit, which is subject to its own thresholds (but this time the credit is reduced if you earn to *little*, not too much!) and is refundable. The sum of the Child Tax Credit and the Additional Child Tax Credit cannot exceed $1,000 per child.
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LeadFoot
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| Posted: 01 Apr 2009 at 21:19 | IP Logged
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taxwoman wrote:
However, if a tp is not eligible for the full amount of the Child Tax Credit due to the income thresholds...
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What taxwoman means to say is if the Child Tax Credit is limited by tax liability, it triggers the calculation of the refundable Additional Child Tax Credit. If Child Tax Credit is limited or eliminated due to AGI phaseout, the taxpayer is also not eligible for the Additional Child Tax Credit.
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arushi_13
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| Posted: 02 Apr 2009 at 00:53 | IP Logged
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Thanks guys. So basically CTC ( Child Tax Credit) has 2 portions of credit non-refundable basic CTC and refundable additional CTC.
So if its generally asked whether CTC is refundable which option should we choose - Refundable CTC or Non-Refundable CTC?
Thanks a lot.
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taxwoman
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| Posted: 02 Apr 2009 at 09:49 | IP Logged
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LeadFoot, you said it much better than I did!
Arushi, if they ask it, I would say CTC is nonrefundable and Additional CTC is refundable.
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AUD 11/21/08 99
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arushi_13
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| Posted: 02 Apr 2009 at 12:19 | IP Logged
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Thanks a lot taxwoman.
LeadFoot and taxwoman you both have an awesomeeeeeeee score in REG. Please do share your study strategy.
Thanks a lot for all your help.
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AUD - 87
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REG - 84
ALL DONE !!!
Arushi
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Topic: Non-Refundable Credit
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