Saturday, October 24, 2009

How much money MINIMUM do you have to make to be able to file your taxes and get the child tax credit?

My friend is married filing jointly and has 3 children. She was wondering what the minimum amount of money is that you have to make in order to be able to file taxes and claim the child tax credit for her children. Thank you in advance for any answers.

How much money MINIMUM do you have to make to be able to file your taxes and get the child tax credit?
As I read the table on page 53 of the instructions to the Form 1040, you must have at least $1.00 of earned income to claim the EIC. The Child Tax Credit is a non-refundable credit and can't reduce your tax liability below 'zero'. However, you MAY qualify for the "Additional Child Tax Credit" which is refundable. Figuring the amount of income required to claim it was to much work. I linked the 1040 instructions and 'Additional Child Tax Credit" form below.
Reply:Actually, three kids is the magic number. Generally, the child tax credit can only be used to offset your taxes. The credit is limited to the lesser of $1,000 per child or your tax liability for the year. However, when you have three children or more, the child tax credit is not limited based on the above and it can actually generate a refund situation. So even if she had no taxable income, she could still file a return and get a $3,000 tax refund for the child tax credit.
Reply:Believe it or not, just one dollar. She should ge a pretty good chunk of cash back with the Child Tax Credit and possibly EIC.





The answerer beneath me is wrong. Even if you only had one child, the portion of the Child Tax Credit that didn't offset your taxes would be refundable. So if you had no tax, the full 1000 for the credit would turn into a refund. It makes no matter how many children their are. So if she has no tax witholdings whatsoever, and three children, then she would get at least a 3000 return.


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