Figuring the Credit
The maximum amount taxpayers may claim for the nonrefundable child tax credit is $1,000 for each qualifying child. The amount actually claimed on Form 1040 depends on the taxpayer's tax liability, Modified Adjusted Gross Income (MAGI), and filing status. The amount of the credit may be reduced if the taxpayer's:
May and Bob file as Married Filing Jointly and have two children who qualify for the child tax credit. Their MAGI is $86,000 and their tax liability is $954. Even though their AGI is less than the threshold limit of $110,000, they can only claim $954, reducing their tax to zero. Because Bob and May cannot claim the maximum child tax, they may be eligible for the additional child tax credit.