Please note that the total of your credits (not including refundable credits like EIC) can not exceed the amount of tax due.

The regular Child Tax Credit is up to $3000 per child ($3600 for child ages 5 and under) . Check to be sure that the Child Tax Credit box is checked on your return next to each dependent name. That particular dependent may not qualify for Child Tax Credit.

If you are eligible for the Additional Child Tax Credit, please make sure all of that information is correctly entered. Our software will calculate this for you based on the information you enter during the interview.

Remember, the best way to clarify your situation is to open your pdf forms and review those first.  If you still believe it is incorrect or cannot figure out the problem, contact customer service and we will be glad to help.

Ten Facts about the Child Tax Credit

The Child Tax Credit is an important tax credit that may be worth as much as $3000 per child ($3600 for child ages 5 and under) depending upon your income. Here are 10 important facts from the IRS about this credit and how it may benefit your family.

1. Amount - With the Child Tax Credit, you may be able to reduce your federal income tax by up to $3000 per child ($3600 for child ages 5 and under) for each qualifying child under the age of 18.
   
   
2. Qualification - A qualifying child for this credit is someone who meets the qualifying criteria of six tests: age, relationship, support, dependent, citizenship, and residence.
   
   
3. Age Test - To qualify, a child must have been under age 18 – age 17 or younger – at the end of the tax year.
   
   
4. Relationship Test - To claim a child for purposes of the Child Tax Credit, they must either be your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister or a descendant of any of these individuals, which includes your grandchild, niece or nephew. An adopted child is always treated as your own child. An adopted child includes a child lawfully placed with you for legal adoption.
   
   
5. Support Test - In order to claim a child for this credit, the child must not have provided more than half of their own support.
   
   
6. Dependent Test - You must claim the child as a dependent on your federal tax return.
   
   
7. Citizenship Test - To meet the citizenship test, the child must be a U.S. citizen, U.S. national, or U.S. resident alien.
   
   
8. Residence Test - The child must have lived with you for more than half of the tax year. There are some exceptions to the residence test, which can be found in IRS Publication 972, Child Tax Credit.
   
   
9. Limitations - (2021)

   The Child Tax Credit phases out in two different steps based on your modified adjusted gross income (AGI) in 2021.

   The Child Tax Credit begins to be reduced to $2,000 per child if your modified AGI in 2021 exceeds:

   • $150,000 if married and filing a joint return or if filing as a qualifying widow or widower;
   • $112,500 if filing as head of household; or
   • $75,000 if you are a single filer or are married and filing a separate return.

   The first phaseout reduces the Child Tax Credit by $50 for each $1,000 (or fraction thereof) by which your modified AGI exceeds the income threshold described above that is applicable to you.

    

   The Child Tax Credit won’t begin to be reduced below $2,000 per child until your modified AGI in 2021 exceeds:

   • $400,000 if married and filing a joint return; or
   • $200,000 for all other filing statuses.

   The second phaseout reduces the Child Tax Credit by $50 for each $1,000 (or fraction thereof) by which your modified AGI exceeds the income threshold described above that is applicable to you.

   
   
   
10. Additional Child Tax Credit - If the amount of your Child Tax Credit is greater than the amount of income tax you owe, you may be able to claim the Additional Child Tax Credit.