Child Tax Credit, Child & Dependent Care Credit, Credit for Elderly or Disabled

Child Tax Credit

Child tax credit is a credit that may reduce your tax by as much as $1000 for each of your qualifying children. (Line 51 on 1040) A qualifying child is a child who is under age 17 at the end of 2012 and is claimed as a dependent on your return. You must reduce your child tax credit if either (1) or (2) applies.

  1. The amount on line 46 of 1040 or line 28 on 1040A is less than the credit. If this amount is zero, you cannot take this credit because there is no tax amount to reduce. But you may qualify for Additional Child Tax credit.
  2. Your MAGI is above $110,000 (MFJ) or $55,000 (MFS) or $75,000 (filing as Single, HOH, or Qualifying Widow(er))

Additional Child Tax Credit

This credit is for certain individuals who get less than the full amount of the child tax credit. The additional child tax credit is a refundable tax credit meaning – may give you a refund even if you do not owe any tax. (Schedule 8812) (Line 65 on form 1040)

Child & Dependent Care Credit 

You may be able to claim the credit if you pay someone to care for your dependent who is under age 13 or for your spouse or dependent who is not able to care for himself or herself. The credit can be up to 35% of your expenses. To qualify, you must pay these expenses so that you can work or look for work. You must have Earned Income. The maximum dollar limit on the amount of expenses is $3000 for one qualifying person or $6000 for two or more qualifying persons less dependents care benefits if received. This credit reduces your taxable income. (line 48 on form 1040) See form 2441 for more info. 

Credit for the Elderly or Disabled 

You may be able to claim the credit for the Elderly or Disabled if (A) You are age 65 or older at the end of 2012 OR (B) You retired on permanent and total disability and you have taxable disability income. There are income limits to qualify for this credit and the amount of credit you can claim is generally limited to the amount of your tax. You need to compete Schedule R and claim the credit on line 53 (Form 1040) by checking box C and entering “Sch R” on the line next to that box.

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