The Money Coach
  • About
    • Meet Lynnette
    • Media Kit
  • Contact
  • Subscribe
  • QR Code
  • Books
  • Categories
  • Coaching
  • Hire Lynnette
  • Money Coach University™
  • The Money Coach Recommends™
No Result
View All Result
The Money Coach
  • About
    • Meet Lynnette
    • Media Kit
  • Contact
  • Subscribe
  • QR Code
No Result
View All Result
The Money Coach
No Result
View All Result

What is the Child Tax Credit?

Lynnette Khalfani-Cox, The Money Coach by Lynnette Khalfani-Cox, The Money Coach
in Taxes
Reading Time: 2 mins read
taxes
8
SHARES
126
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

 

The Child Tax Credit allows you to claim up to $1,000 for each of your “qualifying” children who are under the age of 17 – provided you meet certain income limits.

When Congress passed the fiscal cliff agreement in January 2013, lawmakers put the Child Tax Credit into effect for five years, locking it in from 2012 through 2016.

So if you’re filing your tax returns, it’s worthwhile to learn more about the Child Tax Credit, which can lower the taxes you owe to Uncle Sam or possibly get you a refund.

Who is a Qualifying Child?

For the purpose of claiming the Child Tax Credit on your 2012 taxes, you must have a “qualifying” child to get this credit.

A “qualifying” child must be your dependent, under the age of 17 at the end of 2012, and the child must be a U.S. citizen, U.S. national or U.S. resident alien.

2012 Income Requirements for the Child Tax Credit

You must also meet certain income requirements to qualify for Child Tax Credit.

For 2012, your adjusted gross income must have fallen below the following levels in order for you to be eligible for the full Child Tax Credit:

$110,000 – if you are married filing jointly

$75,000 – if you are single, head of household, or a qualifying widow(er)

$55,000 – if you are married filing separately

Once your income goes above these amounts, your Child Tax Credit begins to get phased out. The Child Tax Credit is reduced $50 for every $1,000 – or every part of $1,000 – that your adjusted gross income exceeds the figures shown above.

The Additional Child Tax Credit

It’s also important to know that the $1,000 Child Tax Credit can be both a nonrefundable and a refundable credit. The IRS calls the refundable part of the Child Tax Credit the “Additional Child Tax Credit.”

For the 2012 tax year, the Additional Child Tax Credit may be available to you if you:

  • had three or more qualifying children, and
  • you had earned income of $3,000 or more

How to Claim the Child Tax Credit

To claim the Child Tax Credit, most people can simply fill in the amount of the credit for which they qualify on line 51 of their 1040 form – or on line 33 for those filing a 1040A form.

However, if you are claiming the Child Tax Credit and your dependent child has an ITIN instead of a Social Security Number, then you are required to also attach Schedule 8812, Child Tax Credit, to your 1040 or 1040A form.

For more information on this topic, see IRS Publication 972, Child Tax Credit.

Tags: Additional Child Tax Creditchild tax creditIRS Publication 972
Previous Post

Can I Claim the Child Tax Credit Plus the Child and Dependent Care Credit?

Next Post

10 Tips When Paying Your Tax Bill

Related Posts

Close up of lower left corner of Internal Revenue Service form 1099-MISC

A Really Simple Explanation of The IRS 1099 Form 

by Lynnette Khalfani-Cox, The Money Coach

As tax season approaches, many individuals and businesses gather their tax documents to file their tax returns. One of the necessary forms that individuals who earn income from non-employment sources need to file is the 1099 form. The 1099 form reports the amount of money an individual or business received...

Elderly Black American Man, African Person Working From Home

Why Do I Owe Taxes? I Am On Social Security

by Lynnette Khalfani-Cox, The Money Coach

Dear Lynnette, I was very upset yesterday to learn that my husband and I owe taxes ($1,100) for 2022. I am on Social Security and my husband is a supervisor at a motel here in Wyoming. I work part time and claimed zero as did my husband. I had an...

Breaking Down the ‘Penalties’ of Single Tax Filings

by Lynnette Khalfani-Cox, The Money Coach

With the new tax filing deadline looming, I stopped into Black News Channel’s “BNC Live” to discuss the upsides of joint filings and the disadvantages of filing solo. To kick off the segment, I detailed the built-in “penalties” that single individuals face in many aspects of life, including higher taxes,...

tax refund

Making the Most of Your Tax Refund

by Lynnette Khalfani-Cox, The Money Coach

With tax season upon us, millions of Americans are expecting sizable refunds.  But there’s no consensus on the best ways to put that money to work.  I stopped into PIX 11 in New York City to share some tips and strategies for maximizing the extra cash. I kicked off the segment with...

Car tax break tips

Skip the Luxury Car and Other Vehicle Tax Break Tips

by Guest Blogger

When it comes to purchasing your next vehicle, you could be leaving money on the table. The truth is that savings on your next car are not only dependent on special deals offered by the dealership. There are also savings to be had in the form of a tax break. Around...

uber and lyft

Tax Pros and Cons for Uber and Lyft Drivers

by Guest Blogger

While being a driver for Uber or Lyft is a great way to earn extra income, it can also come with many tax benefits and disadvantages. Getting an understanding of what can help you at tax time is essential so that you do not owe Uncle Sam more than what...

GOP Tax Plan Hurts The Middle Class

5 Horrible Things About the GOP Tax Plan

by Lynnette Khalfani-Cox, The Money Coach

President Donald Trump and the Republican Party are trying to rush a massive tax “reform” plan through Congress with as little as possible public hearings on the matter. It’s little wonder that the GOP doesn’t want too much scrutiny into this misguided, unfair tax proposal, because this tax plan –...

Load More

Popular Posts

  • Car repair

    What to Do If You Can’t Afford a Car Repair Bill

    1379 shares
    Share 552 Tweet 345
  • What to Do if Your Spouse Stole Money From You

    1170 shares
    Share 468 Tweet 293
  • What to Do If You Can’t Afford to Leave Your Spouse

    1107 shares
    Share 443 Tweet 277
  • Here’s Why I Pay My Kids For Good Grades (And Maybe You Should Too)

    1012 shares
    Share 404 Tweet 253
  • What Do All Those Strange Codes In My Credit Report Mean?

    816 shares
    Share 326 Tweet 204
  • Do This Now If Your Wages Were Not Reported

    747 shares
    Share 298 Tweet 187
  • How to Find Out if a Debt Collector is Licensed to Collect Your Debt

    727 shares
    Share 291 Tweet 182

All information on this blog is for educational purposes only. Lynnette Khalfani-Cox, The Money Coach, is not a certified financial planner, registered investment adviser, or attorney. If you need specialty financial, investment or legal advice, please consult the appropriate professional. Advertising Disclosure: This site may accept advertising, affiliate payments or other forms of compensation from companies mentioned in articles. This compensation may impact how and where products and companies appear on this site. AskTheMoneyCoach™ and Lynnette Khalfani-Cox, The Money Coach® are trademarks of TheMoneyCoach.net, LLC.

©2009-2023 TheMoneyCoach.net, LLC. All Rights Reserved.

RSS / Sitemap /Submit an Article / Privacy Policy / LynnetteKhalfaniCox.com

No Result
View All Result
  • Books
  • Categories
  • Contact Lynnette
  • Get Coaching
  • Hire Lynnette
  • Money Coach University™
  • The Money Coach Recommends™
  • Home
  • Subscribe to Newsletter
  • QR Code

©2009-2021 TheMoneyCoach.net, LLC. All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist