Like many aspects of TRA 97, the CTC is targeted for specific taxpayers. It is currently uncertain what will happen in future years. AMT is very difficult to anticipate, but taxpayers using the CTC who also have large itemized deductions, other than charitable donations and qualifying home mortgage interest, could be likely candidates. It is even possible for the CTC alone to cause AMT problems after 1998. Special provisions allow for some taxpayers with three or more children who also qualify for the Earned Income Credit to apply the CTC against the FICA that waswithheld by their employer.
Similar rules apply for self-employeds.
While the CTC will be a tax savings for many families the calculation surrounding it will add to the complexity of income tax preparation. Be sure and discuss your individual situation with a qualified tax professional. Links to external sites are provided as a courtesy.