CH 8 EIC Additional child credit

Question 0

Does nonrefundable tax credits reduce tax liability to zero? And, refundable tax credits cannot be reduced tax liability to zero?

Answer 0

nonrefundable credits cannot be reduced to zero

refundable credits can be reduced to zero

Question 1

Do credits reduce tax liability?

Answer 1

yes

Question 2

Is this statement true

“Child tax credit is a nonrefundable tax credit.”

Answer 2

yes

Question 3

Is this statement true:

“Child tax credit is a refundable credit while additional child tax credit is a nonrefundable tax credit.”

Answer 3

additional child tax credit is refundable

child tax credit is non-refundable

Question 4

How do you qualify for additional child tax credit?

Answer 4

EI exceeds 3000

three or more qualifying children

Question 5

How much does an additional child credit claim per child?

Answer 5

15% of earned income

Question 6

EIC refundable or nonrefundable tax credit?

Answer 6

refundable tax credit

Question 7

What is criteria of EIC for taxpayers who don’t have children?

Answer 7

1) at least 25 years old, but younger than 65 years
2) not be a qualifying child of another person
3) not be a qualifying child of another person
4) live in US for half a year
5) have EI and AGI of less than 14340 (19680)

Question 8

What is EIC criteria for taxpayers with qualifying children?

Answer 8

1) qualifying child meets the relationship, age, residency, and joint return tests
2) Qualifying child is not claimed by more than one person for EIC
3) Not be a qualifying child of another person

4) EI and AGI less than:
37870 ( 43210 for MFJ) with 1 qualifying child

43038 ( 48378 for MFJ) with 2 qualifying children

46227 ( 51567 for MFJ) with 3 or more qualifying children

Question 9

What are the EIC rules to qualify for the credit?

Answer 9

Have a valid SSN

Not filing MFS status

US citizen or resident alien all year

not file a form 2555( foreign earned income) or form 2555 EZ