Transcript Lesson 6 Child Tax Credit

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 13614 – 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 selfemployment 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