Lesson 6 Child Tax Credit

Objectives Calculate the Child Tax Credit using the child tax credit worksheet Calculate the Additional Child Tax Credit by using Form 8812, Additional Child Tax Credit

Intake/Interview Process Form – Intake and Interview Sheet – Credits Section

Qualifying Child Relationship Age Citizenship Support Residency

Child Tax Credit Exception to “Time-Lived-With-You” Requirement –Child born/died in 2006 –Kidnapped Child –Special Rules for Children of Divorced or Separated Parents.

Child Tax Credit Limits on credit Modified AGI

Check Withholding The child tax credit decreases the tax liability dollar for dollar, but not below zero. The taxpayer may want to adjust his or her withholding, if he or she is having too much tax withheld.

Additional Child Tax Credit Information about the Additional Child Tax Credit. Use Form 8812, Additional Child Tax Credit, to compute the credit.

Additional Child Tax Credit Before completing the form, gather the following information: Earned Income Credit Amount Taxable earned income Any adjustment to income for self- employment tax If the taxpayer has three or more children, total Social Security and Medicare taxes withheld (Form W-2, boxes 4 and 6).

Quality Review (QR) Form 8158 – Quality Review Checklist Adjustments, Deductions, and Credits Section

Lesson Summary Interview Tips Exercise 1 Questions