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Why don't I get the full $1000 per child on child tax credit? & 1 more question?
I have 3 children. I'm filing married filing jointly. My husband's income is all we get...I do not work. My youngest was born on Christmas day 2006. Each year my child tax credit has been LESS than $1000 per child. Even when I just had one child I didn't get the full amount. We make less than $28,000 per year so we do qualify for the EIC also. Last year I got $2,400 credit for 3 kids (I could claim my youngest because she was born before January 1st). But, this year I will only get $1600 and we made LESS money for the year (my husband lost his job and got a new one at lesser pay).
Also, is this money I actually get back on my refund or is it just a deduction to help you not owe taxes? I've always been confused about that. I used to be under the assumption that you got the money as a refund but, now I think CTC might just be a deduction (like claiming medical bills or something). Thanks
The child tax credit is up to 1,000 per child which you probably qualify for. The reason it is reduced is because it is a nonrefundable credit. For instance if you have one child and your tax liability is 500 your child tax credit will be reduced to 500 to bring your tax liability to zero.
If your tax liability is 2000 and you have one child your child tax credit will stay at 1000 and your tax liablity will be reduced to 1000.
If your child tax credit is for people who do not get the full child tax credit. The additional child tax credit can give you a refund even if you do not owe taxes.
If you are doing your own taxes make sure you are claiming both of these credits
because there is a limit depending on your taxable income, but the unused amount goes into additional child tax credit, if you exceed the child tax limit per childby Whitney - 6 years ago
$1000 is the most you can get back per kid but it is all based on how much you makeby ALAYNA - 6 years ago
The EIC is not "$1000 per child". It's a certain percentage of your income, and there is one percentage for people with no children, another percentage for people with one child, and another percentage for people with two or more children. So whether you have two or three, the percentage would be the same.
The EIC is a credit and the amount is taken directly off the tax you owe.
You also get to claim exemptions for each child you have. That is not a credit -- it is an amount that is subtracted from your income before you figure out how much tax you owe.
Credits and exemptions are two different things.
The Child Tax Credit only reduces your tax liability. The maximum CTC you can claim helps to reduce your tax to the lowest amount possilbe.
The EIC and Additional Child Tax Credit, on the other hand, are fully refundable and increase your refund.
You can only take the CTC up to the amount of the taxes you owe. So if you don't owe enough to pay taxes, then you don't get the CTC. There is something called the additional child tax credit, though, that would most likely give you some of the rest of the $1000 per child.
CTC isn't a deduction, it's a credit, and that means that whatever you get does come dollar for dollar off your tax bill.
The 2 answerers above me have it correctly. This is a child tax credit, so it counts againest the tax you pay. What is the total tax paid? Is it less than $3000? Then that is why you got less back, you cannot get more back as a credit then what you owe. In my situation, I am a stay at home mother of 4 children, my husband works. We have a gross income of $75,000 with a net income after deductions of $40,000. His job withheld $5500 for federal taxes, we owe only $1400 based on our net income, after our $4000 child tax credit($1000 per child) is deducted for our children. We are getting $4100 back.by Chris L. - 6 years ago