Tab G 7-8 Child Tax Credit

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The Child Tax Credit is very much in the finest tradition of the"Wait!  There's more!" infomercial style of income tax code.

The Child Tax Credit (CTC) is worth up to $1,000 per "Qualifying Child."  The rules for a QC for CTC purposes are very similar to those in Tab C, for a dependent QC, except that the child must be under 17.

If you enter all the information for the potential QC in TaxWise, including the child's date of birth, TaxWise will automatically calculate the child's eligiblity for the CTC.

The basic CTC is non-refundable and appears on line 51 of Form 1040.  

However, many VITA taxpayers have little or no tax liability, so the non-refundable credit on line 51 does them little or no good.

"But wait!  There's more!"

If the taxpayer did not get the full benefit of the $1,000 per child tax credit on line 51, he or she may get some or all of the remainder as "Additional Child Tax Credit" on line 65.