Child Tax Credit
Child Tax Credit (CTC) Frequently Asked Questions:
What is the CTC?
The Child Tax Credit (CTC) is a federal tax credit worth up to $1,000 per child. New rules make the credit more available to working families, even if they did not earn enough to owe federal income taxes. The CTC can reduce or eliminate the tax you owe. For working families with higher incomes, CTC is reduced $50 per $1,000 for families with adjusted gross incomes of more than $110,000 on a joint return, $75,000 on a single return, and $55,000 for a married person filing separately.
Who is eligible for the CTC?
Families with earned income of more than $11,750 who claim dependent children under age 17 on their 2007 tax return may qualify for a refund or credit. Most families eligible for CTC also can file for the Earned Income Tax Credit.
What children can be counted?
An eligible child includes a son, daughter, adopted child, stepchild, grandchild, or eligible foster child who is less than 17 years of age and is a U.S. citizen or resident immigrant.
How do I get the CTC?
You must claim the CTC on a federal income tax return form for 2007 (which you file and mail in 2008). Instructions and a worksheet will be included with the IRS form 1040A and 1040 tax packet. You cannot use the 1040EZ form. If your income tax is less than your total possible Child Tax Credit of $1,000 per child, the instructions will tell you how to figure if you qualify for a refund. Instructions also will tell you which form you need to complete in addition to an income tax return form.
How much money am I eligible to receive?
The amount you receive is based on the number of dependent children you have under age 17, and the amount of federal income tax you may owe. The CTC you are eligible for would first be applied to your families income taxes owed up to the amount of your total possible CTC. If you have a CTC remaining after determining the amount of federal tax you owe, you may be able to receive the remaining CTC as a refund.
The refund is the lesser of:
• The amount of CTC remaining after figuring the federal income tax you may owe; or
• 15 percent of the amount by which your earned income exceeds $11,750.
How can I get help filling out these forms?
The IRS sponsors trained Volunteer Income Tax Assistance (VITA) volunteers and trained Tax Counseling for the Elderly (TCE) volunteers at various sites.
How can I find the nearest VITA or TCE location?
For the nearest locations, call 1-866-982-3482. Please call the VITA site ahead of time to find out their hours and times of operation.
Can I receive the CTC if I receive public assistance?
CTC is not considered as income and should not affect benefits like welfare or TANF, food stamps, SSI, Medicaid, CHIP, foster care, adoption assistance, or public housing.
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