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child tax credit - is it considered a type of federal refund or just a credit?
(whats the difference in how its classified?) How could it be a type of refund if it isn't for something we aleady over paid like on our income taxes?
okay - so it is NOT a federal refund... Last year I gave my child tak credit money to my trustee (bankruptcy) he took it without telling me it isn't considered a refund. Was that right or should I have kept that part of the money from the tax refund check?
spelling - (TAX not tak)
I have one child so I am not filing an additional child (?) I am not too educated on the tax laws...
5 Answers
- ninasgrammaLv 71 decade agoFavorite Answer
I assume for simplicity that the only credit you have is the Child Tax Credit.
If you have a dependent child under 17, you may qualify for the Child Tax Credit. The Child Tax Credit is a reduction of taxes owed up to $1,000. If you owe more than $1,000 in taxes, all of the Child Tax Credit is used to reduce the taxes you owe.
But if you owe less than $1,000, not all of the of the Child Tax Credit is used. Part or all of the remaining amount not used may be paid to you, depending on your income. This amount is called the Additional Child Tax Credit and is part of your refund.
- Anonymous1 decade ago
Hint, this credit is classified as a "non-refundable credit" by the IRS.
The "additional child tax credit" does not mean 1 vs 2 children.
The credit is up to $1000 per child. If your tax bill is already zero (or close to it), the additional child tax credit (which *is* refundable) may get you some of the $1000 on a different section of the tax return.
- JudyLv 71 decade ago
It's a credit. The ADDITIONAL child tax credit is a refundable credit.
Edit with your new info: You don't GET child tax credit money, it just reduces the tax you owe. What you GOT was a refund of what you paid in, or else EIC money, and yes the trustee should have taken that.
- truittLv 44 years ago
Your age is beside the point, what concerns is in spite of in case you're legally a based or not. in case you pay on your very own housing and nutrients, then you are probable not a based. you will owe approximately $a hundred in federal income taxes. If the two parent does declare you as a based, then greater of your income is taxable and you owe nearer to $500. the bigger expenditures at your income point are approximately $six hundred in social risk-free practices and different payroll taxes. you moreover could owe taxes on your state, and particular your city. it particularly is fullyyt available that $1600 is right on your finished annual tax invoice. regardless of the undeniable fact that, $a hundred.00 biweekly when you consider that January is approximately $2000 so some distance and $2600 for the full year. What you ought to do is be sure you filled on your W-4 form suitable once you all started the interest. that's what tells your organization how a lot to withhold from each and every paycheck.
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- Bostonian In MOLv 71 decade ago
It's a credit that reduces your tax liability dollar-for-dollar, however it is non-refundable so it cannot reduce your tax to less than $0. You can claim the CTC for any qualifying child listed on your tax return who is UNDER age 17 as of the end of the tax year.