What is the phase out for claiming the child tax credit if married?

Question

I pay an in home person to care for my child.Also EVERY OTHER YR i can claim my oldest from prev. marriage., and pay babysitter for him during the summer.

Answer 1

You are talking about two different things here. Child Tax Credit is a $1,000 per child tax credit that does have a phase out for income limits, and also stops the year the child turns 17. Dependent care credit (which is what you are referring to here) has maximum of $3,000 for 1 child or $6,000 for 2 or more children. There is no phase out amount for it, but the maximum credit would be 20% of $6,000 for 2 children. There is a sliding scale for the % you can get for a credit that goes from 20% to 35% of the expenses. I've attached links to the instructions for the form, and the form itself. The dependent care credit ends the year the child turns 13, but you can take any child care expenses incurred during that year before the child turned 13.

Answer 2

The percentage or expenses allowed as a credit goes down with income, but there isn't a phase-out - lowest % is 20% which is for AGI of $43K and up.

Maximum amount you can count for credit is $3000 for one child, $6000 for two or more. So if your income is over $43K, the maximum credit for one child would be 20% of $3K, or $600.

Answer 3

As long as you make less than 110,000 you can take the full 1000 dollar child tax credit. After that it goes down a little at a time.

Answer 4

Child Tax Credit or Dependent Care Credit. They are different animals and it sounds like you are talking about the Dependent Care Credit.

There is no income phaseout for the Dependent Care Credit.