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... Child and Dependent Care Credit – You could deduct up to $3,000 for one dependent or up to $6,000 for more than one with this credit. Your child must be under 17 at the end of the tax year in order to qualify for the Child Tax Credit. It’s also nonrefundable, which means it’s limited to your tax liability. There are two major benefits of the child and dependent care credit: This is a tax credit, rather than a tax deduction. All you have to do is answer some basic questions about how many children you have and how much you earn per year. The maximum benefit per child for children aged 6 to 17 is $5,602. The child and dependent care credit is a tax break specifically for working people to help offset the costs associated with caring for a child or dependent with disabilities. You can save thousands every single year through claiming the child tax credit. Your credit is the applicable percentage of these amounts. Enter your expected dependent care expenses for the year ahead. The child tax credit is one of the most valuable tax credits for families with children under the age of 17. Per IRS Publication 17 Your Federal Income Tax, Page 212:. The maximum benefit per child under 6 is $6,639. The Child Tax Credit (CTC) is a credit for up to $1,000 per qualifying child under age 17. A tax deduction simply reduces the amount of income that you must pay tax on. CCTB Calculator. Expenses paid for the care of a qualifying individual are eligible expenses if the primary reason for paying the expense is to assure the individual's well-being and protection. These maximum benefit amounts are gradually reduced based on two income thresholds. But these figures aren't the amount of your credit. Use this online CCTB calculator to calculate the tax benefits. Similar but not the same.

by Dan Ketchum - Updated July 23, 2018 .

$50 × 10 = $500 phaseout amount. Try the Child Tax Credit Calculator. If actual expenses incurred totalled $9,600 but the maximum allowable deduction is $8,000, the refundable tax credit would be 53% x $8,000 = $4,240. Because their income is over the phaseout threshold, the amount of the child tax credit they could take would be reduced to $1,500. Try using our child care tax credit calculator. Estimate your expenses carefully. How Much is the Child and Dependent Care Tax Credit Worth? The child tax credit is available to parents who qualify, whether or not they pay for child care expenses throughout the year. You can save thousands every single year through claiming the child tax credit. $2,000 – $500 = $1,500 child tax credit. A child qualifies you for the CTC if the child meets all of the following conditions: Just answer the questions and follow the steps. The first income threshold rose is $31,120 while the second income threshold is $67,426. The total expenses that you may use to calculate the credit may not be more than $3,000 (for one qualifying individual) or $6,000 (for two or more qualifying individuals). $10,000 ÷ $1,000 = 10. The percentage of child and dependent care costs that you can claim, as an allowable expense, is 20 to 35-percent based upon your AGI.