Which Form Should I Use?
To claim the child tax credit you will need to use form 1040A or 1040. This will help you determine if you can claim the child tax credit. The first step will be to check the amount on line 40 of form 1040 or line 25 on form 1040A. If the amount listed on either of these lines is 0 then you do not qualify for the child tax credit. You may still be eligible to receive the additional child tax credit.
What Form should I Use For the Additional Child Tax Credit?
When using either Form 1040 or 1040A you will need to make sure that you fill out the child tax credit worksheet which will come with the form instructions. If you do not qualify for the child tax credit and would like to see of you qualify for the additional child tax credit then you will need to also fill out form 8812. On form 8812, you will check on line 11 and take that amount over to line 60 on form 1040 or to line 38 on form 1040A.
What Information Will I Need?
You will need to provide a name and social security number for each qualifying child that you enter on the form. You can potentially have a savings of up to $1,000.00 per child if you fill out the necessary forms at tax time. It will help you reduce your tax liability dollar for dollar. You will not get a refund directly from this credit. You will need to check the box on line 6c, column 4 for each qualifying child that you are trying to take the credit on. If the child is not your dependent then you will need to fill out form 8901.
TurboTax Online offers all of the forms needed to file your 2012 tax return.
Please visit TurboTax Online to learn more about the child tax credit.
Having such kind of tax credit is already a good news for parents with growing number of children so that they can assist them well even they have a low income. So, it's essential for them to file their child tax credit correctly to avail such benefits.
Posted by: Darcy Grubaugh | April 27, 2012 at 04:54 PM