Posts tagged child tax credit

Terry Griffith of the Memphis CPA firm, The Griffith Firm, explains the difference between a credit and a deduction.

The question that comes up a lot, is “what’s the difference between a credit and a deduction?”  Credit; let me give you an example.  Lets say you have a child who is younger than 17 years old and you’re filing jointly with your wife and your income is less than a hundred thousand dollars for the year.  You are entitled to a thing called the Child Tax Credit.  Now that Child Tax Credit is typically a thousand dollars for each child who’s under 17 years old.  That means you’re going to get $1000 in your pocket.  So, that is a thousand dollars you’re going to get for each child if your eligible for that particular credit.  As your Memphis CPA firm we can help you understand what will be best for you.