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.
- The Child Tax Credit allows taxpayers with qualifying children to receive up to $1000 per child under the age of 17.
- In order for your child to be a “qualifying child”, they must pass the age, support, residence, citizenship, dependent, and relationship tests.
- At the end of the year, your child has to be under the age of 17.
- 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.
- You have to provide the child more than half of their support during the year.
- You have to claim the child as a dependent when filing federal taxes.
- The child has to be a U.S. citizen.
- The child had to have lived with you for more than half of the year.
- 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.
- 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.
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