Child Tax Credit

1
Lesson 6

• Child Tax Credit

2
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

3
Intake/Interview Process

• Form 13614 Intake and Interview Sheet Credits
  Section

4
Qualifying Child

• Relationship
• Age
• Citizenship
• Support
• Residency

5
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.

6
Child Tax Credit

• Limits on credit
• Modified AGI

7
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.

8
Additional Child Tax Credit

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

9
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).

10
Quality Review (QR)

• Form 8158 Quality Review Checklist
• Adjustments, Deductions, and Credits Section

11
Lesson Summary

• Interview Tips
• Exercise 1
• Questions