Child Tax Credit & How Much You Could Get Back

When it comes to taxes, having a child is nothing but good news. It may be a little confusing at first, but Turbo Tax makes it pretty easy and straight forward to receive your tax exemption. When I used Turbo Tax for 2015's taxes, I remember messing around with this new child tax credit and seeing weird numbers I didn't understand. So give it some time and play around with entering the numbers

Tax Exemption

For 2015, your personal exemption was $4,000 for each qualifying child. This can also include a stepchild, foster child, sibling, grandchild and a few more. In order to receive this exemption, the child must live with you at least half of the tax year and has to be under 19. Your child can also be eligible if he or she is under 24 and is currently a full time student.

Child Tax Credit

The child tax credit itself, is a $1,000 credit you receive for each eligible child. With this child tax credit come certain income limitations. 

If you're single, you can claim it if your adjusted gross income is less then $75,000. Married filing jointly will make that number go up to $110,000. Married filing separately will allow you up to $55,000.

On top of that, your child has to under 17 at the end of the year. If your child turns 17 at the last day of the year, your child is not eligible anymore. You also have to claim your child as a dependent on your tax return and your child can not have provided over half of their own support during that year.

Related Post:  The Differences Between U.S. State Tax Laws In A Nut Shell.

For more info you can always visit Turbo Tax.

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