Child tax credit

A child tax credit is a tax credit based on the number of dependent children in a family . In the United States taxpayer can claim a $1000 per child tax credit if the individual has a "qualifying child" . According to the IRS, the child must be claimed as dependent which requires the child to have a Social Security number and be :

  • Related to the taxpayer (son, daughter, stepson, stepdaughter, or decedent, brother, sister or their descendant, or foster child) .

  • Under the age of 17 as of the end of the year."> This means that if the child turns age 17 during the tax year, the child is not eligible for the child tax credit . This is true even if the 17th birthday falls on Dec. 31. If the child is age 17 anytime during the year, is not qualified for the credit .

  • A citizen, national, or resident of the U.S.

    • The child tax credit reduces tax liability . For a married couple filing jointly, the credit begins to be reduced if the adjusted gross income exceeds $110,000 . For many families, the child tax credit will exceed their tax liability . In many such cases, the unused portion of the child tax credit is refundable as the "additional child tax credit .
    The amount that is available as a refund depends on the amount of earned income, and in certain circumstances the amount of social security and Medicare taxes paid . The individual?s requesting child tax credits are advised to refer to IRS form 8812 and instructions .

    Who is Eligible?

    The credit is limited if the modified adjusted gross income is above a certain amount . The amount at which this phase-out begins varies depending on the filing status :

  • Married Filing Jointly $110,000.

  • Married Filing Separately $55,000.

  • All others $ 75,000.

    • In addition, the Child Tax Credit is generally limited by the amount of the income tax one owes as well as any alternative minimum tax . If the amount of the Child Tax Credit is greater than the amount of income tax, the individual may be able to claim some or all of the difference as an ?additional? Child Tax Credit. The additional Child Tax Credit may give a refund even if no further tax is liable . The total amount of the Child Tax Credit and any additional Child Tax Credit cannot exceed the maximum of $1,000 for each qualifying child .

    How is it Paid

    One may get more if one cares for a child under one or a disabled child . The other tax credit one may be entitled to, if either the individual or the individual ?s partner is working, is called Working Tax Credit. It includes a childcare element to help families who are working and spending money on childcare . One can claim the Child Tax credit through:

    Child Tax Credit by post.

    By report a change of circumstance by phone or post.

    Renew the tax credits award by phone or post .

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