a credit agency garnished my income tax,is the the child tax credit exempt from the garnishment?
No
The credit reduces your taxable income by up to $1,000 per qualifying child, so your income must be at least as much as the amount of the credit you claim. Otherwise, there is no income for the credit to reduce. If you make less than the amount of the Child Tax Credit, you may still qualify for the Additional Child Tax Credit.
The Child Tax Credit is $1,000 for each of your dependent children that you are claiming that are 16 or younger. It doesn't have anything to do with gross income. This credit is nonrefundable, so it can only reduce your tax to zero. If your tax is less than this credit (see worksheet in IRS instructions), you will only claim enough of the credit to reduce your tax to zero & you may qualify for the Additional Child Tax Credit. The Additional Child Tax Credit is refundable (you can get money back if it's more than your taxes). It can be affected by your income. If the Child Tax Credit worksheet directs you to this credit, use IRS Form 8812 & instructions to see how much to claim. The total claimed on the line for Child Tax Credit & Additional Child Tax Credit cannot be more than $1,000 for each dependent child age 16 or younger. Yes, unemployment is part of gross income. However, it is not earned income.
No tax credit and no tax deduction on your income tax return for child support payments.
If they have tax exempt income for items such as a Roth IRA, then they do not have a tax burden. Also, it possible with low income and tax credits such as the child tax credit, Hope credit, and earned income credit, so have your total income tax reduced to zero.
The simple answer is because they don't make enough income or qualify for refundable tax credits, such as earned income tax credit or additional child tax credit.
In the UK Child Tax Credit can be paid to a family with an annual income below £58,000. The highest rate is paid to low income families with an annual family income below £16,040.In the US Child Tax Credit is available to tax payers and reduces the amount of total tax paid. Details are covered by IRS form 8812.. For married couples the credit is reduced for an adjusted gross income (AGI) above $110,000 ($55,000 if filing separately), or $75,000 for a single parent household. Low income families can claim Additional Tax Credit which will pay the credit even if the recipient does not owe any tax.
If you received income from side jobs for cash, that income should still be reported on your tax return. You are required to report all income, including income earned from self-employment, even if you did not receive a Form 1099-MISC or any other type of tax form. In terms of claiming the child tax credit, you may still be eligible if you meet the requirements. The child tax credit is generally available for taxpayers who have a qualifying child under the age of 17 and meet certain income limits. If you have a qualifying child and meet the income requirements, you may be able to claim the credit on your tax return. However, if you do not have a qualifying child, you may still be eligible for the credit if you have a dependent who meets certain criteria. Additionally, the rules for claiming the child tax credit can be complex, so you may want to consult with a tax professional or use tax preparation software to determine your eligibility and calculate the credit.
It can be. The Child Tax Credit is 2 parts. The first is non-refundable and can only reduce the tax to $0. If the full amount of the credit (generally $1000 a qualifying child) is not used, it becomes the Additional Child Tax Credit and the amount of refundable credit is calculated on Form 8812. The amount that can be refundable will depend on the wages and other income on the return.
Big difference. If you have a child under the age of 16 you get a 1000.00 child tax credit. Depending on the income if you fall below the 25,000 income and have a child you will also get an earned income credit which you only get if you have a child living with you. Hope this helps.
No. You have to have qualified earned income worked for. Self employment income that you worked for.
Yes. If you child is born during the tax year 2009 you are eligible for the earned income credit. However, you must meet the other requirements of the earned income credit.