Income tax accounting Essay Example | Topics and Well Written Essays - 500 words

Income tax accounting - Essay Example is under 19 years old at the end of the year for which the claimant is claiming for the EITC or under 24 years old at the end of the year for which the claimant is claiming for the EITC or any age and permanently and totally disabled; and The Child Tax Credit is a separate credit from the EITC. The Child Tax Credit is a nonrefundable credit and has a limit of $1,000 per qualifying child. The actual amount of Child Tax Credit is determined based on the income. The amount of Child Tax Credit is smaller if the adjusted gross income is more than: $110,000 and the filing status is married filing jointly, $75,000 and the filing status is single, head of household, or qualifying widow(er), or $55,000 and the filing status is married filing separately (Internal Revenue Service, 2004). In addition, the Child Tax Credit is basically limited by the amount of the income tax the parent owes as well as any alternative minimum tax the parent owes (Internal Revenue Service, 2006). Parents who qualify for the Child Tax Credit may also qualify for the Additional Child Tax Credit. The Additional Child Tax Credit is a refundable credit and may give the parent a refund even if the parent does not owe any tax. The credit is for certain parents who receive less than the full amount of the Child Tax Credit (Internal Revenue Service, 2004).