Child Tax Credit Explained

One of the popular credits extended along with the Bush tax cuts and the tax brackets was the child tax credit. The child tax credit is a nonrefundable $1,000 tax credit for every child under the age of 17, subject to eligibility for both the filer (income eligibility) and the child (age isn’t the only factor in determining eligibility).

For families, this tax credit is very popular because a $1,000 tax credit for someone in the 25% tax bracket is like getting a $4,000 deduction. If you’re in the 15% tax bracket, it’s like getting a $6,666 deduction – for each child.

(Click to continue reading…)