Ten Facts about the Child Tax Credit

The Child Tax Credit is a very important tax credit for taxpayers who have children. The IRS rewards those with qualifying children up to $1000 per qualifying child based on your income. Today, we are discussing ten facts about this beneficial family tax credit.

  1. The Child Tax Credit allows taxpayers with qualifying children to receive up to $1000 per child under the age of 17.
  2. In order for your child to be a “qualifying child”, they must pass the age, support, residence, citizenship, dependent, and relationship tests.
  3. At the end of the year, your child has to be under the age of 17.
  4. To claim a child for the Child Tax Credit the child must be your immediate son/daughter, stepchild, foster child, sibling, stepsibling, or a decent of any of the previously mentioned individuals. Legally adopted children are also considered your child.
  5. You have to provide the child more than half of their support during the year.
  6. You have to claim the child as a dependent when filing federal taxes.
  7. The child has to be a U.S. citizen.
  8. The child had to have lived with you for more than half of the year.
  9. You may have the credit limited based on your modified adjusted gross income. For example, married filers hit a phase out at $110,000, married filers who file separately hit phase out at $55,000, and all other taxpayers hit phase out at $75,000.
  10. If the amount of your Child Tax Credit is more than the amount of income tax you have to pay, you may qualify for the Additional Child Tax Credit.

When you utilize TurboTax to file your taxes you can eliminate the process of determining which forms you need to use. All you have to do is answer some simple questions and they will fill in the forms for you. Taxpayers should also know that TurboTax discount codes are their key to saving money on filing fees.

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