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Child Tax Credit
Maximum credit: $1,000 per qualifying child.
Adjusted Gross Income (AGI) Phaseout
The credit is reduced by $50 for each $1,000 of modified AGI above:
- $110,000 Married Filing Jointly.
- $75,000 Single, Head of Household, or Qualifying Widow(er).
- $55,000 Married Filing Separately.
The regular child tax credit is nonrefundable, but if any part of the credit is disallowed because tax is reduced to zero, the taxpayer may qualify for the additional child tax credit, which is refundable.
Click Families With Children 2016 Here
Additional Child Tax Credit
Taxpayers may be able to claim the additional credit if any portion of the regular child tax credit was disallowed because tax was reduced to zero before the entire credit was used. The portion of the child tax credit phased out because of AGI cannot be used to claim the
additional credit. The additional credit is refundable.
Child and Dependent Care Credit
Credit
The credit is 20% – 35% of the smallest of:
- $3,000 ($6,000 for two or more qualifying persons).
- Qualified expenses incurred and paid during the year.
- Include expenses for care in 2015 that were paid before
2015. Reduce expenses by dependent care benefits excluded
from income. - Taxpayer’s earned income.
- Spouse’s earned income.
Click Families With Children 2016 Here
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If desired, Pat Tax, Inc. would be pleased to perform the requisite research and provide you with a detailed written analysis. Such an engagement may be the subject of a separate engagement letter that would define the scope and limits of the desired.
The Tax E Man Blog, along with our website www.PatTax.net, are designed to be year round resources for tax consultation, preparation and representation services provided by Pat Tax, Inc. . Please feel free to contact us with any questions or concerns.
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