Child Tax Credit

The Child Tax Credit (CTC) can be a great way to lower your tax burden and maximize your 2019 refund.

With the help of our 2019 Child Tax Credit Calculator, you can learn if your family qualifies for this potentially valuable Tax Credit—as well as how long you can claim your child on taxes and how much you can save on this year’s federal return.


Using the 2019 Child Tax Credit Calculator

Depending on your income, the 2019 Child Tax Credit Calculator could save you up to $2,000 for each qualifying child.

To qualify, your child must:

  • Be a U.S. citizen or resident alien
  • Have a Social Security Number (SSN)
  • Be under 17 years of age at the end of the year
  • Be designated as your son, daughter, stepchild, adopted child, eligible foster child, brother, sister, stepbrother, stepsister or descendant
  • Be your claimed dependent for the tax year
  • Have lived with you for more than half of the year
  • Have NOT provided half of their own financial support during the year

Once you know your child meets these conditions, you can plug your income into the Child Tax Credit Calculator for 2019 to determine the amount of savings for which you’re eligible.


Phase Out Limits

Recent changes to the Child Tax Credit Phase Out Table include a higher threshold for the adjusted gross income limitation—making it possible for those with even higher incomes to claim the full Child Tax Credit.

The Phase Out Table now allows you to claim the full tax credit if you:

  • make up to $400,000 in adjusted gross income (AGI) for filing jointly
  • earn up to $200,000 AGI for all other filing statuses

In addition to higher income limitations on the CTC Phase Out Table, you may also qualify for a new, nonrefundable credit called the Credit for Other Dependents—a $500 tax credit available for those with non-child dependents like disabled parents, the elderly or any child 17 years or older you currently support.

While 17 years is the oldest age you can claim a child on taxes, older children you support (18 and up) may indeed qualify for the Credit for Other Dependents.

Please note: if your dependents qualify you for the $500 credit, you face the same AGI limits as those for the CTC.


Can I claim my grandchildren on taxes?

The short answer is yes. But before you can claim your grandchildren on your taxes, they must meet the same conditions as any other qualified Child Tax Credit dependent (age, citizenship, residency, descendancy, support, etc.).

Additionally, you can’t claim a grandchild on your taxes if they happen to be a dependent of someone else—say, your own child or guardian—even if they live under your own roof.

To learn more about what you’ll need to claiming you grandchildren or other dependents on taxes, check out IRS Publication 501.


Additional Child Tax Credit

Another helpful tool included in the 2019 Child Tax Credit Calculator is the Additional Child Tax Credit (AATC). Available on Schedule 8812, the ACTC may be claimed when the amount of your Child Tax Credit is greater than the income tax you owe the IRS.

The AATC is refundable up to 15 of your earned income in excess of $3,000. Refundable ACTCs may be available to those who qualify and haven’t used up the available CTC amount. If you’re in the military, nontaxable combat pay may be added to your income, which can result in a larger credit.

To learn more about the 2019 Child Tax Credit Calculator and calculating your CTC, contact your local Liberty Tax® office today.”