|Credits for 2007 Tax year*|
|Type||Maximum Benefit||MFJ Phaseout Begins at||MFJ 100% Phaseout at|
|Child Care Credit||$1,050 per child|
|$15,000**||43% phaseout at $43,000**|
|Child Tax Credit||$1000 per child||$110,000||$110,000 + $20,000 for each child|
|Additional Child Tax Credit||up to $1000 per child||n/a||earned income below $11,751|
|Hope Education Credit||$1650 per child||$94,000||$114,000|
|Lifetime Learning Credit||$2000 per family||$94,000||$114,000|
|Earned Income Credit|
$2853 - one child
|$14,180**||$35,241 for one child|
$39,783 for 2 or more
*While the sources are believed to be good, My Wealth Builder cannot guarantee the accuracy, timeliness or completeness of the information in the table.
** 2006 tax year number.
I was surprised to find so many possible credits (and large credit amounts) for taxpayers with children. The ones we'll be able to use in the near term are the child tax credit and the adoption tax credit. Hopefully, the education credits (Hope and Lifetime Learning) will still be available when our daughter attends college.
For more on Crossing Generations, check back every Thursday for a new segment.
This is not financial or tax advice. Please consult a professional advisor.
Copyright © 2007 Achievement Catalyst, LLC