2017 Child Tax Credit Calculator Usa

What is the 2017 Child Tax Credit?

The 2017 Child Tax Credit was part of the Tax Cuts and Jobs Act (TCJA) that was signed into law in December 2017. It was designed to provide financial assistance to families with children under the age of 17.

The credit was fully refundable, meaning that even if your tax liability was zero, you could still receive the credit as a payment from the IRS. This made it particularly beneficial for low- and middle-income families.

How to Claim the 2017 Child Tax Credit

To claim the 2017 Child Tax Credit, you need to file your federal income tax return for 2017. The credit is claimed on Form 1040, Schedule 8812, and is reported on Line 9 of the form.

You will need to provide information about your children, including their names, dates of birth, and Social Security numbers. You will also need to provide information about your income and filing status.

If you are eligible for the credit, you will receive a payment from the IRS, even if you do not owe any taxes. This payment is typically issued in the form of a refund or a direct deposit into your bank account.

Eligibility Requirements

To be eligible for the 2017 Child Tax Credit, you must meet the following requirements:

• You must be a U.S. citizen or resident alien.
• You must have a valid Social Security number.
• You must have a qualifying child who is a U.S. citizen or resident alien.
• Your qualifying child must be under the age of 17 at the end of the tax year.
• Your qualifying child must have a valid Social Security number.
• You must provide the child's name, date of birth, and Social Security number on your tax return.

In addition to these requirements, there are income limits for the credit. The credit phases out for higher-income families, with the phase-out beginning at $400,000 for married couples filing jointly and $200,000 for all other filing statuses.

Credit Amount and Phasing Out

The amount of the 2017 Child Tax Credit is $1,000 per qualifying child. The credit is fully refundable, meaning you can receive the credit even if you do not owe any taxes.

The credit phases out for higher-income families. The phase-out begins at $400,000 for married couples filing jointly and $200,000 for all other filing statuses. The credit is completely phased out at $440,000 for married couples filing jointly and $220,000 for all other filing statuses.

For example, if you are a married couple filing jointly with an adjusted gross income (AGI) of $420,000, your credit would be reduced by 50%. If your AGI is $440,000, you would not be eligible for the credit.

Worked Examples

Let's look at a few examples to illustrate how the 2017 Child Tax Credit works.

Example 1: Single filer with one child

John is a single filer with one child under the age of 17. His adjusted gross income (AGI) is $50,000. He is eligible for the full $1,000 Child Tax Credit.

Example 2: Married couple with two children

Sarah and David are married and file jointly. They have two children under the age of 17. Their AGI is $100,000. They are eligible for the full $2,000 Child Tax Credit ($1,000 per child).

Example 3: High-income married couple

Michael and Lisa are married and file jointly. They have one child under the age of 17. Their AGI is $420,000. Their credit is reduced by 50%, so they are eligible for $500 in the Child Tax Credit.