Question

The two factors that may limit the maximum child tax credit of &1,000 per qualifying child are

Answer 1

The two factors that limits the maximum child credit is:

1 Phase out limit: if your income exceeds the MAGI, then you Child tax credit is reduced by $50 per $1000 of income exceeding MAGI. The limit in 2017 for MFJ is $110,000, Married-Single $55,000, Head of household, single filer $75,000.

2 Low tax liability: If your tax liability is below the child tax credit, then your tax liability is reduced to 0 and any remaining child tax credit is lost.

Note: For 2018, Child tax credit is increased to $2000 per child with $1400 as refundable and $600 non refundable.