Can someone tell me how the child tax credit and earned income credit works?

Question

Are they refundable or non-refundable? My husband and I had our first baby this past April, so the upcoming tax season will be our first time claiming a child. We will have made roughly $36,000 of taxable income for this year and I was wondering if there was any way for me to figure out a round about number on what we can expect to get back from claiming our daughter.

Answer 1

There's no way to answer this question based on the info you gave in your question.

The earned income credit is a tax credit based on your income. The child care tax credit is a tax credit you get for paying for child care. You can find out all the information you need on both these credits, and other things you will need to know by going to irs.gov and searching on the topics.

Answer 2

Child Tax credit is nonrefundable while EIC is refundable tax credit.
Suggest you look at online calculators, www.irs.gov or elsewhere.
Depends on whether you guys contribute to your 401k, whether you owon a home, whether you paid student loan interest, etc.

Answer 3

EIC is refundable, CTC isn't although if you don't have enough tax to take the full amount, you might be eligible for something called the additional child tax credit (that's additional credit, not additional child).

With one child, married, $36K income EIC is most likely $709.  Your tax should be wiped out by the CTC and the Making Work Pay credits.