Explain the child tax credit to me

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It's $1,000, correct?

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Yes, $1,000 per child. With certain income limitations. It starts to phase out at $100,000-MFJ & $75,000-Single.

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Also, this means that if I owe $500 in federal taxes, then I should receive $500 instead of owing anything, right?

It's a tax credit, not a tax deduction, right?

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Yes, & yes.

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Also, this is for each child under 18, right?

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See the rules for a "qualifying child" below:

-Is your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, half brother, half sister, or a descendant of any of them (for example, your grandchild, niece, or nephew),

-Was under age 17 at the end of 2014,

-Did not provide over half of his or her own support for 2014,

-Lived with you for more than half of 2014 (see Exceptions to time lived with you , later),

-Is claimed as a dependent on your return,

-Does not file a joint return for the year (or files it only to claim a refund of withheld income tax or estimated tax paid), and

-Was a U.S. citizen, a U.S. national, or a U.S. resident alien. For more information, see Publication 519, U.S. Tax Guide for Aliens. If the child was adopted, see Adopted child , later.

The general credit is nonrefundable. However, there are provisions for a refundable portion - if you meet the guidelines.

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frick

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This.

Same here. Once you hit 130k as married filing jointly you get nothing for one child. When you hit 150k you get nothing for having two kids. What's the point? Lol. I thought they were suppose to be a tax advantage.