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 17 (age 16 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 $1,500 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
– $560
$3,733
$6,164
$6,935

 

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

Up to $8,000 in child care expenses

For more then 1 qualifying child

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 partial refundable up to $1,500 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.

Affordable Care Act (ACA)

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

Learn More

EasyMoney Loan

Get Refund Advance up to $60001 No Credit Check. High Approvals.

Learn More

Find your nearest ATC office and make an appointment today.

Use my current location Or

Stay Updated

Subscribe to our free newsletter and receive the latest updates.

Your information will not be published.

We are updating our Twitter Page - Check back soon.

This message is only visible to admins:
Unable to display Facebook posts

Error: Error validating application. Application has been deleted.
Type: OAuthException
Code: 190
Click here to Troubleshoot.

1 $500 Bonu$ – also referred to as Free Tax Loan – is an optional tax refund related loan, not your tax refund, and is via ATC Advance for qualified individuals (Not EML). The amount of the advance – $200 to $500 – will be deducted from tax refunds and reduce the amount that is paid directly to the taxpayer. Tax returns may be filed electronically without applying for this loan. Fees for other optional products or product features may apply. The Bonu$ is not a “personal loan” and approval is subject to satisfaction of identity verification, eligibility criteria, and underwriting standards. There is no cost to the taxpayer to receive an advance… 0 fees – 0% interest! Ask ATC Tax Pro for details. Limited time offer at participating locations.

2 Free Tax Preparation refers to a Federal Short Form. Long forms discounted with price match (excludes online tax returns). Some restrictions may apply. Limited time offer, see store for details.

3 Free Tax Loans refer to ATC Bonus1 Loan which has 0 Fees and is Interest Free – 0% APR. There is no additional cost associated with the actual loan. See disclaimer1 for more details.

  • Follow us
ATC Income Tax, Tax Return Preparation, Decatur, GA

Copyright © 2016-2023 ATC Financial, LLC. All Rights Reserved. 14