Lesson: Child Tax Credit

In this lesson, join Nick Palazzolo, CPA, as he breaks down the intricacies of the child tax credit, providing clear examples to illustrate how taxpayers can leverage this credit for each qualifying child. Delving into the specifics, he explains the significance of the credit amount, eligibility criteria based on a child's age, and the income phase-out thresholds that affect the calculation. Nick also clarifies the concept of refundability and the additional child tax credit, emphasizing the necessary earned income level to qualify. Through practical scenarios, he demonstrates the step-by-step process to calculate the total credit amount, phase-out reductions, and the potential for claiming the refundable portion. Whether dealing with single or joint filers, he ensures a thorough comprehension of how to determine the child tax credit on an income tax return.