Things You'll Need:
- Calculators
- File Cabinets
- File Folders
- Tax Preparation Software
- Calculators
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Step 1
Calculate your adjusted gross income and compare it to the threshold for your filing status. The thresholds are $110,000 for married filing jointly; $75,000 for single, qualified widow(er) or head of household; and $55,000 for married filing separately.
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Step 2
If your income is over the threshold for your filing status, go to the next section.
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Step 3
Multiply the number of qualifying children by $500 to get a credit amount.
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Step 4
Enter the smaller number of your credit amount or your income tax on the child tax credit line of the 1040 or 1040A.
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Step 1
Determine how many children under 17 are your dependents.
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Step 2
Determine how many of those are your own children, stepchildren, grandchildren or foster children.
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Step 3
Determine how many of those are U.S. citizens or residents. This is your number of qualifying children.
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Step 1
Calculate the amount by which your adjusted gross income is above the threshold for your filing status. The thresholds are $110,000 for married filing jointly; $75,000 for single, qualified widow(er) and head of household; and $55,000 for married filing separately.
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Step 2
After calculating the difference between your income and your threshold, divide that amount by 1,000. Round up to the highest whole number.
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Step 3
Multiply this number by $50. This is the amount of child tax credit you cannot take.
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Step 4
Multiply the number of your qualifying children by $500 and subtract from that the amount of child tax credit you cannot take. This is your credit amount.
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Step 5
Compare your credit amount to your income tax, and enter the smaller number on the child tax credit line of the 1040.
