Child Tax Credit (CTC) 1. What is a Tax Credit Credits are designed to offset tax liability Refundable credits Nonrefundable credits CTC is nonrefundable.

Child Tax Credit(CTC)

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What is a Tax Credit• Credits are designed to offset tax liability• Refundable credits• Nonrefundable credits• CTC is nonrefundable• Addition CTC is refundable

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CTC Rules• Qualifying child is:

o Under 17o US Citizen, national, or permanent residento Claimed as your dependento Did not provide over half of their own supporto Lived with the taxpayer for more than 6 months of tax

year

• MFS with income over $55,000 are not eligible for entire credit

• Credit amount is $1,000

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TaxWise Main Info Page

• Enter child’s birthdate, relationship, months in home, and social security number

• TaxWise will determine if the child qualifies the taxpayer for the credit

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TaxWise1040 Page 2

• Information automatically transfers to the 1040

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TaxWise 1040 Page 2

• Additional child tax credit automatically transfers

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