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You can find a detailed step by step guide to calculating awards using daily rates on our Revenuebenefits website for advisers.HM Revenue Customs (hmrc) add together the elements which you qualify for based on circumstances to work out what is called your maximum tax credit award the most you can get.The way your tax credit award for the year is calculated is based on the same principles explained on this page but the income figures used may be calculated in a different way.Example Devin and Mike claim tax credits as a couple.Tax credit awards are made up of a number of elements check our.CTC child element abc discount appliances (For children born after, this may be limited to 2 children unless an exception applies cTC child disability element disabled child rate severely disabled child rate, cTC family element from, this is only payable for claims which include a child/children born before ).John works 20 hours and claims working tax credit as a single person.If you have older children, you may be able to earn more and still be eligible.Their maximum tax credits award will be worked out first: Child element standard rate x 3 8,340 Family element 545 Maximum tax credits 8,885 However, because their income is above the 16,105 threshold for CTC only claims, hmrc will apply a reduction due to income which.Working for Families makes it easier for you to work and raise a family.Hmrc will use either previous year income or current income (actual income or an estimate if the year has not yet finished) to calculate your claim and work out your reduction due to income (explained above).They will receive 6,468.05 of CTC.CTC and, wTC pages to see which ones apply to you.How is my award worked out?In-work tax credit (iwtc) is an additional payment for families who normally work a minimum number of hours each week for salary and wages.Best Start from ).