If I am already claiming my three children as dependents, can I still claim the $500.00 tax credit.
<< If I am already claiming my three children as dependents, can I still claim the $500.00 tax credit. >>The credit is in addition to the dependency exemption. Unless they're infant triplets, you should go back and check your 1998 return to make sure you did it right there. You may have overpaid.Phil MartiTax Preparer
The child tax credit is a credit. A credit goes against tax. Your exemptions go against your income. As with any credit you have to have a tax liability to take a credit. A tax liability means you have an amount on Form 1040 line 40 or an amount on Form 1040A line 25. Please remember that if you have any credits on Form 1040 lines 40,42,or 44 or on Form 1040A lines 26,27, or 29. These credits will reduce your tax liability first, then the child tax credit will come into play. If the other credits I have mentioned reduce your tax to zero not to fear, this is a refundable credit if you have three or more children. You will be required to complete the Form 8812 to take the addional child tax credit and it may be reduced by the amount of social security and medicare tax you have paid in through your Form W-2. This additional credit generally will also be reduced by the amount of earned income credit you take on your tax return. I know this seems like alot of stuff to try to understand and I agree with you. All I will ask you to do is get your instructions for which ever tax form you are filing and do the work sheets. The work sheets and the Form 8812 are pretty well done, considering the government created them. I hope I have not muddied the water for any one who also had this question and I hope this answer will help. Till next time take care. P.S. If your AGI is above a certain limit this credit will also go away. Please see the worksheets to see the limits.
<< If I am already claiming my three children as dependents, can I still claim the $500.00 tax credit. >>As noted, the answer is generally yes. You can read more about the child credit in the Taxes FAQ area. TMF TaxesRoy
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