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Can I Claim the Child Tax Credit 2014?

If you meet the requirements to claim the Child Tax Credit 2014, expect to see a larger tax refund in 2015

If you have a child, you know first hand that being a parent changes your life.

Along with the new responsibility comes the expenses of having a child, such as food, clothing, classes, pictures, day care and so much more. Luckily, the IRS offers a few tax advantages to help with the never ending costs. One in particular is the Child Tax Credit.

Keep in mind however, just because you have a child, it does not automatically qualify you to claim the Child Tax Credit on your 2014 Taxes.

In order to claim the credit on your 2014 Tax Return, you’ll have to meet the 7 IRS Child Tax Credit requirements. 

1. Relationship

In order to claim the child tax credit, the child must be one of the following;

  • your child
  • your stepchild
  • a foster child placed with you by a court or authorized agency
  • an adopted child (even if the adoption is not final by the end of the tax year)
  • your brother
  • your sister
  • your stepbrother
  • your stepsister
  • your niece
  • your nephew Continue reading “Can I Claim the Child Tax Credit 2014?”
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10 Facts To Know Before Taking the Medical Expenses Deduction in 2014

Medical expenses fall among the list of IRS deductions. Before filing 2013 taxes, first learn if you qualify.

If you are generally healthy then you probably won’t be able to take a medical tax deduction. However, if you racked up countless medical and dental bills over the tax year, you might qualify for the medical expenses deduction.

Whether your deducting medical expenses or not, you can file your taxes on RapidTax. To help your filing process of claiming medical expenses on your 2013 tax return, here’s ten important facts;

1. You must Itemize: Don’t plan on deducting medical expenses if you’re taking the standard deduction. You can only claim a deduction for medical expenses if itemizing your deductions.
2. The AGI threshold has increased to 10%: In the past, if your list of medical expenses totaled a number exceeding 7.5% of your adjusted gross income (AGI), then you could deduct them. Starting on 2013 tax returns, that percentage has increased by 2.5%. Meaning, your total medical expenses must equal at least 10% of your AGI.
Continue reading “10 Facts To Know Before Taking the Medical Expenses Deduction in 2014”

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What Is The 2013 Child Tax Credit & Additional Child Tax Credit?

The 2014 tax season is here and you may be wondering what federal tax credits you’re eligible for on your 2013 taxes.

If your children are under 17, don’t forget to claim the 2013 child tax credit. The credit allows up to $1000 (per qualifying child), to be subtracted from the income tax you owe. If you are taking the 2013 child tax credit, you may be able to claim the additional child tax credit and receive a tax refund.

If you qualify for the child tax credit, you can claim it and avoid the hassle of extra paperwork (which often goes along with claiming it), by filing your taxes on RapidTax.

What is the Child Tax Credit and Who Qualifies?

The child tax credit is a federal tax credit up to $1000 per child, for individuals with a qualifying child (or children), under age 17. To receive the child tax credit, you must meet six requirements, provided by the IRS.  The requirements to claim the 2013 child tax credit are as follows;

  1. The credit may only be for a qualifying child.
  2. The child must have been 16 years old or younger at the end of 2013.
  3. You must provide at least half of the child’s support.
  4. You must claim the child as your dependent on your federal taxes.
  5. The child must be a U.S. citizen, U.S. national or U.S. resident alien.
  6. The child must have lived with you more than half of 2013.

What is the child tax credit phase out?

If you meet the requirements (listed above), the 2013 child  tax credit amount can be up to $1,000 per child. Don’t get too excited about the extra $1000, the total amount you can claim depends on your modified adjusted gross income, meaning there are income phaseouts.

To make life easier, RapidTax has created an income phase out chart to refer back to when filing your 2013 taxes. The charts below explain the income child tax credit phase outs (income levels above the stated, receive a smaller child tax credit) along with the child tax credit amounts, based on how many children you are claiming.

2013 Child Tax Credit

What is the additional child tax credit? Can I get a refund?

The additional child tax credit is any child tax credit amount which is refunded, due to the credit being excess to a person’s tax liability. Basically, if you want to take the child tax credit and realize you don’t have any tax due, you will instead tax the additional child tax credit (and receive a refund). The table below will help you understand the 2013 child tax credit you’ll receive this year.

2013 Additional Child Tax Credit

Filing your taxes and claiming the child tax credit doesn’t necessarily have to be a complicated process. Claiming the child tax credit 2013 is straightforward and simple when filing your taxes on RapidTax. Tax season 2014 is here, file today!

1/30/2014