Home
Log in / Sign Up
    Private Messages   Advanced Search   Rules   New User Guide   FAQ   Advertise   Contact Us  
Forum -> Household Management -> Finances
Child Tax Credit



Post new topic   Reply to topic View latest: 24h 48h 72h

amother
OP


 

Post Tue, Jul 13 2021, 12:40 pm
Can someone please explain to me how the sliding scale works.
I tried googling the information all I'm coming up with is that you need to make at least $2,500 and it starts to go down after $200,000-$400,000. Does that mean that if you make more than $2,500 and less than $200,000 you should be entitled to the full amount?

It seems based on the amounts that I've been getting that there is another piece to the sliding scale.
This is for 2020 taxes not the new system.

Please explain if you're in the know!
TIA
Back to top

nll1994




 
 
    
 

Post Thu, Jul 15 2021, 11:46 am
Are you referring to the Child Tax Credit or the Child and Dependent Care Tax Credit?
If you are referring to the Child Tax Credit the below link might be helpful.

https://www.cnet.com/personal-.....week/

"If you're married and filing jointly with your spouse, your AGI needs to be $150,000 or less to qualify for the full child tax credit amount. At $440,000, couples will phase out of the tax credit entirely.

The credit phases out by $50 for every $1,000 of income over the threshold amounts for all filers, according to Joanna Powell, managing director at CBIZ."
Back to top

BrachaVHatzlocha




 
 
    
 

Post Thu, Jul 15 2021, 11:58 am
old system was $2000/kid. I am assuming it brought down my taxes owed. I never get an $8,000 refund for my 4 kids.
Back to top

mha3484




 
 
    
 

Post Thu, Jul 15 2021, 12:01 pm
BrachaVHatzlocha wrote:
old system was $2000/kid. I am assuming it brought down my taxes owed. I never get an $8,000 refund for my 4 kids.


Correct. At a certain income level this allows people to reduce taxes owed as opposed to getting it all back. My accountant was telling me a lot of people who are not using to getting a bill when they file due to these credits will find themselves owing money to the IRS this year.
Back to top

chatz




 
 
    
 

Post Wed, Jul 21 2021, 12:00 pm
The ctc for 2020 is $2000 per child, but only up to $1400 is refundable. $600 per child can only be used to reduce your income taxes. If you don't have income taxes, it's lost. $1400 can be refundable but there's a formula how much based on income. The $2500 minimum comes in at that point.

Say a couple makes $65,000 together. Their income tax is something like $4500. If they have 2 kids, the $4000 is fully used to offset their income tax. (If they get money back, it's because they had too much withheld during the year. Your own money is fully refundable within a certain number of years.) If they have 10 kids, the nonrefundable ctc ($6000) offsets their income tax and the remainder is lost. The refundable portion ($14,000) goes back to them (possibly reduced by a complicated formula).

The ctc for 2021 is fully refundable.
Back to top

amother
Cyan


 

Post Wed, Jul 21 2021, 8:41 pm
chatz wrote:
The ctc for 2020 is $2000 per child, but only up to $1400 is refundable. $600 per child can only be used to reduce your income taxes. If you don't have income taxes, it's lost. $1400 can be refundable but there's a formula how much based on income. The $2500 minimum comes in at that point.

Say a couple makes $65,000 together. Their income tax is something like $4500. If they have 2 kids, the $4000 is fully used to offset their income tax. (If they get money back, it's because they had too much withheld during the year. Your own money is fully refundable within a certain number of years.) If they have 10 kids, the nonrefundable ctc ($6000) offsets their income tax and the remainder is lost. The refundable portion ($14,000) goes back to them (possibly reduced by a complicated formula).

The ctc for 2021 is fully refundable.


Right. Essentially, after a certain number of kids the previous tax credit only helped you if you were middle class or more affluent and this one is more widely usable.
Back to top

miami85




 
 
    
 

Post Wed, Jul 21 2021, 8:48 pm
I don't know according to the formulas I saw, we were shorted $50 and our AGI is only 99K and I don't know who to complain to.
Back to top
Page 1 of 1 Recent Topics




Post new topic   Reply to topic    Forum -> Household Management -> Finances

Related Topics Replies Last Post
Child Tooth Ache- Pediatric Dentist
by Bruria
2 Yesterday at 5:17 pm View last post
Podiatrist for ingrown toenail on child
by amother
1 Yesterday at 12:23 pm View last post
Tottini Credit 0 Tue, Mar 26 2024, 5:14 pm View last post
If you successfully healed your child's gut
by amother
10 Mon, Mar 25 2024, 3:32 pm View last post
Do you know where your child is tonight?
by amother
16 Sun, Mar 24 2024, 4:44 pm View last post