A question about taxable income.?

Question

What is considered taxable income? How much earned income does one have to earn to be considered taxable income? And what does this have to due with claiming the child tax credit. i have read and read on the internet but can not make any since of it. i have went to the irs website and although they have alot of info none of it make since to me. If any one has any info i would be grateful. The reason I am asking is because i thought i was going to be able to bring back that credit but I'm told I'm not and that i will recieve only 68 dollars of the additional tax credit. (I do understand the additional tax credit). Thanks!

Answer 1

Hello again.

The Child Tax Credit and Additional Child Tax Credit are not based on whether your income was earned or not. They are only based on your adjusted gross income.

The Earned Income Credit is a different credit. It is based on your earned income (usually that is your salary).

All income that is not specifically exempt (such as welfare payments, child support, and other listed amounts) is taxable. There is no minimum.

Answer 2

Limits you can make before paying taxes depend on your filing status. This year if you are single, not a dependent, and have no self-employment income, then the limit is $8450 - if you make less than that you don't have to file, and if you do, you wouldn't owe any tax.

The child tax credit of $1000 is not a refundable credit. That means that it will subtract from your taxes owed, but if you don't owe any, you won't get it, and if you owe less than $1000, it would wipe out what you owe but you wouldn't get the rest back. The additional child tax credit is a refundable credit, which means that under some circumstances itallows you to get whatever part or all of whatever amount of the $1000 you didn't get for the child tax credit because you didn't owe enough taxes to get it.

Answer 3

First of all taxable income is income you receive from working, or gambling, or lottery, or interest received from savings accts. or stocks. the child tax credit, is a credit that is used only to delete the tax when you receive taxable income! if your adjusted gross income, renders a 1000 dollars tax, the 1000 dollars child tax credit you get for every child eligible will deplete it to zero, if you have more than one child, that goes to additional child tax credit reimbursement, If you have no tax due, you can't take advantage of the child tax credit, this is also true of retirement credit, and child and dependent care credit!