Child Tax Credit question

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Child Tax Credit question

Postby FB01 » Fri Jul 26, 2013 1:32 pm

Hello,

Have a quick question on child tax credit. I have one kid last year and for 2013, I will be filing for 2 kids. Please let me know if my understanding is correct

For AGI greater than 110,000 for 2013, child tax credit deducts 50 dollars for every thousand

E.g Last year my AGI for 118K so my child credit got deducted by 400 dollars. I got 1000-400=600 dollars tax credit

Now for next year, I will be get child tax credit for 2 kids so considering my AGI is same as 118k, will i get tax credit of 1600 dollars (2000-400=1600)

Please let me know if I am missing something.

JR
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Re: Child Tax Credit question

Postby MN Finance » Fri Jul 26, 2013 1:37 pm

Not looking at the tax code, but my memory is that the credit phases out as 50 per kid (our income increased through the range as we were having kids). So if you are 8k over then you lose 400 per kid.
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Re: Child Tax Credit question

Postby pshonore » Fri Jul 26, 2013 2:46 pm

MN Finance wrote:Not looking at the tax code, but my memory is that the credit phases out as 50 per kid (our income increased through the range as we were having kids). So if you are 8k over then you lose 400 per kid.

I think thats incorrect; OP has the right interpretation.
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Re: Child Tax Credit question

Postby jared » Fri Jul 26, 2013 2:59 pm

OP is correct. The reduction is not per child.

http://www.irs.gov/pub/irs-pdf/i1040gi.pdf (see page 43 for worksheet).
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Re: Child Tax Credit question

Postby MN Finance » Fri Jul 26, 2013 8:10 pm

Thanks for correcting, guess we just phased out quick ;)
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