Income tax accounting Essay Example | Topics and Well Written Essays - 500 words

Income tax accounting - Essay Exampleis under 19 age old at the end of the year for which the claimant is claiming for the EITC or under 24 years old at the end of the year for which the claimant is claiming for the EITC or any age and permanently and totally disabled andThe Child revenue enhancement Credit is a separate reference from the EITC. The Child Tax Credit is a nonrefundable credit and has a limit of $1,000 per shifting child. The actual amount of Child Tax Credit is determined based on the income. The amount of Child Tax Credit is smaller if the adjusted gross income is more than $110,000 and the filing stead is married filing jointly, $75,000 and the filing stance is single, head of household, or qualifying widow(er), or $55,000 and the filing status is married filing separately (Internal Revenue Service, 2004). In addition, the Child Tax Credit is basically circumscribed by the amount of the income tax the parent owes as well as any alternative tokenish tax the p arent owes (Internal Revenue Service, 2006).Parents who qualify for the Child Tax Credit whitethorn also qualify for the Additional Child Tax Credit. The Additional Child Tax Credit is a refundable credit and may give the parent a refund even if the parent does not owe any tax. The credit is for certain parents who receive less than the full amount of the Child Tax Credit (Internal Revenue Service, 2004).