How to Claim the Child Tax Credit

Parents deserve a bit of a (tax) break now and then.

As a busy parent, filing taxes can be found on the To-Do list between Monday’s soccer practice and Thursday’s parent-teacher conference. Do yourself a favor this year and see if you are eligible for the Child Tax Credit. Tax credits are great because, unlike deductions, they reduce your tax bill dollar-for-dollar. That means, a larger tax refund for you and your family!

What is the Child Tax Credit?

The Child Tax Credit offers a credit of up to $1,000 per child to qualifying taxpayers. It is only available to those who can claim a child as a dependent and meet several other requirements.

There is no limit to the number of children you can claim using the Child Tax Credit, however, claiming lots of kids may subject you to the Alternative Minimum Tax (AMT).

Who can claim the Child Tax Credit?

In order to claim the Child Tax Credit, the child in question must: Continue reading “How to Claim the Child Tax Credit”

Tax Filing Tips Every Parent Should Know

If parenthood could be summed up in one word, that word would be responsibility. Being a parent means not only are you responsible for yourself, but also another human being.

With new responsibilities comes new pressures. However, RapidTax wants to help take that pressure off your shoulders, at least when it comes to the responsibility of filing your taxes.  That’s why we have created this list of top tax tips for parents filing taxes. These tips will not only save you money, but also save you time when filing your taxes.

How to Increase your Tax Refund when Claiming Your Child:

The credits below apply to you if you are claiming a child on your taxes. Be sure to read through the entire list or you might mix some extra tax dollars!

1. Each child is a dependent exemption: When filing, each child you claim is counted as a tax exemption of $3900.

2. Claim the Child Tax Credit: For each child you claim (under the age of 17), there is a non-refundable tax credit of $1000. This credit is phased out if your modified adjusted gross income is over $75,000 if your single or over $110,000 if married filing jointly.

3. Child Care is a Tax Credit:  The Child and Dependent Care Credit allows filers to claim up to $1,050 of child care related expenses paid for one qualifying dependent, as long as the child is under 13 years old. Did you spend money on child care expenses for two or more children? You can claim up to $2,100 for two or more dependents with this credit. Continue reading “Tax Filing Tips Every Parent Should Know”

What Is The 2013 Child Tax Credit & Additional Child Tax Credit?

The 2014 tax season is here and you may be wondering what federal tax credits you’re eligible for on your 2013 taxes.

If your children are under 17, don’t forget to claim the 2013 child tax credit. The credit allows up to $1000 (per qualifying child), to be subtracted from the income tax you owe. If you are taking the 2013 child tax credit, you may be able to claim the additional child tax credit and receive a tax refund.

If you qualify for the child tax credit, you can claim it and avoid the hassle of extra paperwork (which often goes along with claiming it), by filing your taxes on RapidTax.

What is the Child Tax Credit and Who Qualifies?

The child tax credit is a federal tax credit up to $1000 per child, for individuals with a qualifying child (or children), under age 17. To receive the child tax credit, you must meet six requirements, provided by the IRS.  The requirements to claim the 2013 child tax credit are as follows;

  1. The credit may only be for a qualifying child.
  2. The child must have been 16 years old or younger at the end of 2013.
  3. You must provide at least half of the child’s support.
  4. You must claim the child as your dependent on your federal taxes.
  5. The child must be a U.S. citizen, U.S. national or U.S. resident alien.
  6. The child must have lived with you more than half of 2013.

What is the child tax credit phase out?

If you meet the requirements (listed above), the 2013 child  tax credit amount can be up to $1,000 per child. Don’t get too excited about the extra $1000, the total amount you can claim depends on your modified adjusted gross income, meaning there are income phaseouts.

To make life easier, RapidTax has created an income phase out chart to refer back to when filing your 2013 taxes. The charts below explain the income child tax credit phase outs (income levels above the stated, receive a smaller child tax credit) along with the child tax credit amounts, based on how many children you are claiming.

2013 Child Tax Credit

What is the additional child tax credit? Can I get a refund?

The additional child tax credit is any child tax credit amount which is refunded, due to the credit being excess to a person’s tax liability. Basically, if you want to take the child tax credit and realize you don’t have any tax due, you will instead tax the additional child tax credit (and receive a refund). The table below will help you understand the 2013 child tax credit you’ll receive this year.

2013 Additional Child Tax Credit

Filing your taxes and claiming the child tax credit doesn’t necessarily have to be a complicated process. Claiming the child tax credit 2013 is straightforward and simple when filing your taxes on RapidTax. Tax season 2014 is here, file today!