I started a new job and had to fill out all the forms for taxes. One question was about the child tax credit and i'm confused. lol. I'm a single mom to one child and have made just under 8,000 so far this year. Would I even qualify or just put zero on the line and move on?
It said put 2 for each child. Sorry, I'm just so confused by all of this. Any help is greatly appreciated!
If your child is under age 17 then if you make at least 3,000 in 2009 in earned income you will be eligible for a one thousand dollars cash credit called the CTC. You will also be eligible for $ 2,712 in earned income credit based on the 2008 rates (increased for 2009). On top of this you will receive a refund of all federal income tax withheld. When you fill out your W-4 in your situation you will probably have no federal income tax taken out of your check but don't worry as you will owe not tax; President Bush did a good job and set everything in motion for you to receive this money. Next year it may be not so rosey, but who knows what the future holds.
It said to put 2 for each child. So that's what you should have done.
Since you have one child, you should have put a 2 on that line, which would have added 2 to your total allowances.
That means you'll get more in your paycheck and have less withheld each pay period -- which is fine, because you'll be getting the child tax credit and so won't owe as much tax at the end of the year, so you don't need to have as much withheld.
If you are a single mom, and you have been providing support to your child for the entire year, you can claim head of household exemption and your child as a dependent.
Note: If you had divorce proceedings and the agreement gives the child deduction to your husband, you cannot take either.
As for putting two for each child, ask someone in your HR or Payroll Department.
Good luck!
if you are asking about your W-4, you are single, that would be one mark and you have a child, that would be two marks, if this is your only job, you would also mark one more--total 3
if you do not anticipate making $15650 for the year you would not need to file unless income taxes were withheld that could be refunded to you
if the child is under 17 there is a credit toward your tax liability and any used amount is later added as additional child credit, and you maybe entitled to EIC because you have a child in your household, thereby actually getting additional refund
For 2009, the child tax credit is based on either the child being under 17, or if you don't owe tax, making more than $3000.
So if you made $8000 so far, the ACTC could be $750 so far.