If I worked for myself all year trimming trees and made 23000k can I still get the child tax credit?

Question

Usually I work a regular 40 hour job but this year I worked for myself getting my work by going door to door trimming trees. So I want to know how I should file taxes this year,and if I am eligable to get the BIG return {4000-6000} I have got in the past becuase of the kids

Answer 1

You won't be getting a "big return" this year. BTW, a return is the piece of paper you file. Maybe you mean a big "refund" this year. Probably won't be getting that either unless you paid in estimated taxes. At least not what you may be expecting.

Since you are self employed you file Schedule C or C-EZ with your return to calculate your self-employment income. You can deduct the reasonable and necessary expenses that you incurred in generating that income so your taxable income should be somewhat lower than the $23k. Then you attach Schedule SE to calculate the Self-Employment tax. That works out to 15.3% of 92.35% of your self-employment income.

You will have a pretty steep tax bill when you're done. It could be several thousand dollars. You are still eligible for the Child Tax Credit and that will help to reduce the bill. You probably also qualify for the Earned Income Credit and possibly the Additional Child Tax Credit. The last two are refundable so you very probalby will get something back.

However without knowing more information it's impossible to say how much that will be. Would need to know your filing status, how many kids you have, and what your business expenses were against that $23k income to even start to make a guess.