How to Calculate the Child Tax Benefit
- 1). Determine eligibility for the child tax benefit. Children must be U.S residents, adopted or a blood relation, below the age of 17. They must also be dependents who have provided less than half of their own financial support.
- 2). Download the Child Tax Credit Publication 927 from the IRS website using the link in Resources. Print out the Child Tax Credit worksheet starting on page 3 of Publication 927 to serve as a guide for calculating the child tax benefit. Make sure the 1040 form, 1040A form or 1040RN form, which can also be found on the IRS website, is completed before beginning the Child Tax Credit Worksheet.
- 3). Multiply the number of children by 1,000. Write this total number into box 1 of the child tax benefits worksheet.
- 4). Write the amount from line 38 of Form 1040, line 22 from Form 1040A or line 36 from Form 1040RN into box 2 of the worksheet.
- 5). Write down in box 3 the totals from any exclusions of income received in Puerto Rico, or any amounts from line 18 of form 2555-EZ or line 15 from Form 4563. If you're only filing using Form 1040 or form 1040A, enter the number "0" into box three.
- 6). Add together the total from steps 2 and 3 and write the total down into box 4 of the worksheet.
- 7). Write down the amount for your filing status in 5. If married and filing jointly, write down $110,000 into the box. If filing as an single individual, single income or widow(er), write down $75,000 into the box. If married, but filing separately, write down $55,000.
- 8). Determine if the amount in box 4 is more than the amount in box 5. If no, leave the box on part 6 blank and write "0" in box 7. If yes, subtract the amount from box 5 from the amount in box 4. If the result is not a multiple of $1,000, increase the amount to the next multiple of $1,000.
- 9). Multiply the amount written in box 6 by 5 percent and write down the result in box 7
- 10
Determine if the amount in box 1 is more than the amount in box 7. If not, you are not eligible for the child tax benefit and cannot legally claim the child tax benefit on the 1040 form. If yes, then subtract the amount written in box 7 from the amount in box 1 and write down the result in box 8. - 11
Proceed to page 2 of the worksheet and write down the amount from the 1040 form, line 46, into box 9. - 12
Complete box 10 by adding the numbers from your 1040 form from lines 47, 48, 49 and 50. Add the numbers from lines 29, 31 and 32 if you're using the 1040A form, or add lines 44, 45 and 46 if using form 1040NR. Write down the total in box 10. - 13
Determine if you are claiming any of the credits noted on Step 11. If not, then write down the amount from box 10 into box 11. If yes, then complete the worksheet for line 11 on page 6 and write down the total in box 11. - 14
Subtract the total written down in box 11 from the total in box 9. Write down the amount in box 12. - 15
Determine if the amount in box 8 is more than the amount in box 12. If not, write down the amount from box 8 into box 13. If yes, write down the amount from box 12 in box 13. This is the calculated tax child benefit. - 16
Enter the child tax benefit total from box 13 onto line 51 from Form 1040, line 33 on Form 1040A or line 47 on Form 1040NR.
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