1. TAX-AIDE Child Tax Credits Both a non-refundable and a refundable credit

2. TAX-AIDE Two Credits #1: Child Tax Credit Nonrefundable Up to $1,000 per qualifying child NTTC Training – 2014 2

3. TAX-AIDE Two Credits #2 Additional Child Tax Credit Refundable Maximum Credit  15% of earned income over $3,000  Up to unused portion of child tax credit NTTC Training – 2014 3

4. TAX-AIDE Earned income for CTC Resource Guide page I-1 NTTC Training – 2014 4

5. TAX-AIDE Qualifying Child ● Must be a dependent: A qualifying child NOT a qualifying relative ● Under age 17 ● U.S. citizen, national or resident alien NTTC Training – 2014 5

6. TAX-AIDE Child of Divorced...Parents ● Must be a dependent, so CTC goes with dependency to noncustodial parent ● See also Form 8332 NTTC Training – 2014 6

7. TAX-AIDE Qualifying Child Chart: NTTC Training – 2014 7

8. TAX-AIDE Entering in TaxWise ● Main Information Sheet NTTC Training – 2014 8 If the birthday is correct so the age is under 17...

9. TAX-AIDE Entering in TaxWise ● Main Information Sheet NTTC Training – 2014 9 and relationship makes him a qualifying child...

10. TAX-AIDE Entering in TaxWise ● Main Information Sheet NTTC Training – 2014 10 and he lived with taxpayer more than ½ the year...

11. TAX-AIDE Then... TaxWise will calculate the credit NTTC Training – 2014 11

12. TAX-AIDE Note ● Remind taxpayer that credit will disappear when child turns 17 ● 2014 is last year for those with birthday in 1998 NTTC Training – 2014 12

13. TAX-AIDE Child Tax Credit NTTC Training – 2014 13 Questions? Comments?