Disposable Income = Gross Income - Taxes. So, lets say that your monthly gross income is $4,500, and $1,200 a month is subtracted for various taxes: $4,500 Gross Income - $1,200 Taxes = $3,300 Disposable Income. Disposable income is money that needs to cover food, shelter, clothes, non-essential purchases, savings, etc.
Ten Facts about the Child Tax Credit. IRS Tax Tip 2011-29, February 10, 2011. The Child Tax Credit is an important tax credit that may be worth as much as $1,000 per qualifying child depending upon your income. Here are 10 important facts from the IRS about this credit and how it may benefit your family.
How much can you deduct? In general 20, you can deduct up to $8,000 annually for each child who is aged six or under at the end of the year, and up to $5,000 for each child aged seven to 15 at any time in the year. This limit is increased to $11,000 annually for each child who is eligible for the disability tax credit (see topic 80).