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What is the 2009, 2010 Child Tax Credit Amount

The maximum Child Tax Credit Amount you can get for each qualify child is $1,000 and is not limited by the number of children.  For example, if you have five qualifying children, you will receive a $5,000 credit. 

The Child Tax Credit Amount can also be decreased due to your annual income amount.  

If your income is above the following amounts, your credit will be decreased:

·    Married Filing Jointly – $110,000.00 or More

·    Single, Head of Household or Qualifying Widow(er) – $75,000.00 or More

·    Married Filing Separately – $55,000.00 or More

When totaling your income, you must include all foreign earned income.  Often, your foreign earned income will be excluded from your taxable income but for this credit it will be included.  Additionally, to get the credit you have to use either Form 1040, 1040A or Form 1040NR.  You can not use Form 1040EZ or Form 1040NR-EZ if you are trying to get his credit.  

Now you must have a qualifying child to receive this credit, in accordance with IRS guidelines.  The IRS has set requirements you must meet to get the credit.  For example, the Child has to either be a U.S. Citizen, U.S. National or U.S. Resident Alien to qualify.  All children must have a valid Social Security Number and must match IRS records.  

Further, the child must have lived with your for more than half of the year but there are exceptions to this rule.   If your child had to live away for school or went to a juvenile home they will still qualify.  Also, if you child was born later in the year, such as November or December they will still qualify.    

This Child Tax Credit can make a big difference in your refund, since you get a $1,000 Credit on your taxes for each qualifying child.  To see if you qualify for the maximum Child Tax Credit Amount, try using TurboTax Online.

Federal tax returns are due April 15th unless you file an extension. Your extension must be filed by the same deadline.  

If you think you will be unable to meet the deadline, file an extension.  There’s not a penalty for filing your return before your extension is up or even for filing it on time if you’re able to. You’ll want to be safe to avoid costly penalties. If you do miss the deadline and did not file an extension, you will be assessed penalties and interest.  There are 3 penalties you will be charged by the IRS and they are calculated by the amount of tax you owe.

    3 Penalties for Late Filing

Failure to File:  

This penalty is calculated by the length of time past the deadline for filing your tax return.  You will be charged 5% times the amount you owe each month you are late up to a maximum of 25%. 

Failure to Pay:

This penalty is also calculated by the length of time past the deadline for paying your tax due.  You will be charged 0.5% times the amount you owe each month you are late. 

Interest:

The percentage of interest you will be charged is also calculated per the amount owed, however the percentage varies per the amount you owe and is per the current interest rate.  

To avoid costly penalties, you must either file your tax return by the deadline of April 15th or file a request for an extension by the deadline of April 15th.  

There are online services available to help you complete your tax return that will guarantee the accuracy and guarantee the biggest refund or maximize your deductions to help reduce the amount of tax you owe.  

For more information and answers to all your tax-related questions, visit TurboTaxOnline today.