Is it the more i make the more of a child tax credit I will get? Or Less? I am in Florida?

Question

I used a tax software (Tax Act) for 2007 and just typed my stuff in and it told me i would get $0 for child tax credit. I am claiming 3 children. I heard the less I make the more I would get back for child tax credits

Answer 1

If you are claiming three dependent children under age 17 as of December 31, 2007 and you have zero Child Tax Credit, then you have zero tax owed.

Look at your results, do they show anything on the line "tax"?. If there is no amount other than zero, you will not get any Child Tax Credit.

If your income is over $11,750 and you received zero Child Tax Credit, then you should receive some "Additional Child Tax Credit."

For none of the credits is it true that the less you make the more credit you get. For nonrefundable credits such as Child Tax Credit you must owe tax to get a benefit. For refundable credits, there is a maximum at some point, but if you make zero income, you get zero credit.

Answer 2

The Child Tax Credit is a non-refundable credit. If your tax liability is already zero then you won't get anything for it. It comes off after the EIC so in many if not most cases very low income earners will see no benefit from it.

If you're eligible for it, it's worth up to $1,000 per child but is limited by your net tax liability. If your net liability is zero, so is the Child Tax Credit.

Depending upon your income and the ages of the children you MAY qualify for the Additional Child Tax Credit. That is refundable so if there is any payable you'll get it even if your liability has already been reduced to zero. If you haven't finished running through the process with Tax Act, keep going. It will let you know if you may qualify for the ACTC shortly.

Do keep in mind that the version of Tax Act you are using is NOT the final filing edition. It's entirely possible that there will be more tax law changes by the end of the year as well as bug fixes and patches for the software.

Answer 3

The child tax credit is a flat $1000 per child, except for high-income earners where it's phased out, but it's not refundable which means you only get it if you have tax liability. Since many low- and even moderate-income earners with children don't pay any income tax, they don't get the credit. If you don't pay any tax, you don't get the credit, and if you owe less tax than the credit, it only takes your tax to zero, you don't get the excess back.

Under some circumstances, if you can't take the full child tax credit, you can be eligible for something called the additional child tax credit - that one IS refundable.

Answer 4

yes the less you make more credit you get as it is based on income check out www.irs.gov for more info.