Tax Tools

Credits & Deductions Checklist

This checklist will help you determine if you qualify for the child tax credit:

Age

A child must have been under age 18 (age 17 or younger) at the end of the year

Dependent

You must claim the child as a dependent on your federal tax return.

Relationship

A child must either be your son, daughter, stepchild, foster child, brother, stepbrother, or a descendent of any of these individuals, which includes your grandchild, niece, or nephew.

Citizenship

The child must ba a U.S. citizen, U.S. national, or U.S. resident alien

Support

The child must not have provided more than half of his/her. own support.

Residence

The child must have lived with you for more than half the tax year.

Limitations

The credit is now refundable up to $3,000($3600 if under 6 yrs. old) limited if you modified adjusted gross income is above a certain amount. The amount varies depending on your filling status.

$400K

Married Filling Joint

$200K

For all other taxpayers

Tax deductions & credits

For taxpayers with children

Earned Income Tax Credit

No. of children Max Credit
$1,502
$3,618
$5,980
$6,728

 

Income Threshold AGI earned icome

No. of children Below
$49,622*
$55,529*
$59,187*
*Max income for Married Filing Jointly

 

Dependent Age Test

Under 19

Under 24 if student for at least 5 months

Note: Any age if dependent is disabled.

Child & dependent care tax credit

For 1 Child

Max Credit 50% ($4,000)

Up to $8,000 in child care expenses

For more then 1 qualifying child

Up to 50% ($8,000)

Up to $16,000 in child care expenses

Limitations of Credit

The credit will be reduced when AGI reaches $125,000. An eligible family with an AGI of $125,000 or less will get a credit worth 50% of their qualifying expenses. The credit further reduces from 50% to 20% for families with an AGI between $125,001 and $183,001. Credit will stay at 20% for families with an AGI from $183,001 to $400,000, but will continue to reduce again from 20% to 0% for families with an AGI above $400,000. If your AGI is above $438,000, the credit is completely phased out.

Child Age Limit Under 13

Lifetime Learning Credit

Max Credit

20%

of tuition and fees for any post-secondary education; maximum of $2,500 for the household.

Income Threshold

For individual taxpayers, the American Opportunity Credit phases out if modified adjusted gross income is over $69,000. For married filing joint, the credit phases out if MAGI is over $138,000.

Student Age Limit

None

Qualified students can be any age.

Note: If student is dependent of another, taxpayer may claim credit.

American Opportunity Tax Credit

Max Credit

up to $2,500

per student for four years of post-secondary education

Income Threshold

For individual taxpayers, the American Opportunity Credit phases out if modified adjusted gross income is over $90,000. For married filing joint, the credit phases out if MAGI is over $180,000.

Student Age Limit

None

Must be taxpayer’s dependent.

The credit is 40% refundable, up to $1,000, so it can benefit even those with no tax liability

Aditional Child Tax Credit

This year the credit is fully refundable up to $3000 ($3600 if under age 6) in Additional Child Tax Credit, but you first must qualify for the Child Tax Credit. If the amount of your Child Tax Credit is not limited by your income tax liability, you may be able to claim the Additional Child Tax Credit.

$400K

Married Filling Joint

$200K

Single, head of household, or qualifying widow(er)

For each $1,000 by which the taxpayer’s adjusted gross income (AGI) exceeds $75,000 ($150,000 for joint fliers), the child tax credit is reduced by $50.The Additional Child Tax Credit is fully refundable less any tax liability. Tax-exempt combat pay counts as earned income for calculating the Additional Child Tax Credit.

CHILDREN UNDER 6 YRS OLD

UP TO $3600

CHILDREN UNDER 18

UP TO $3000

IRS Letter 6419

In January 2022, the IRS will send Letter 6419 to inform taxpayers of the total amount of advance payments of Child Tax Credits distributed to them in 2021—information that they will need for their 2021 tax returns.

Affordable Care Act (ACA)

Affordable Care Act (ACA) and what it means for your taxes

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