Today, we are discussing ten facts about this beneficial family tax credit and how you can claim the child tax credit.
- The Child Tax Credit allows taxpayers with qualifying children to receive up to $2000 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.
- The beginning credit phaseout for the child tax credit increases in 2018 to $200,000 ($400,000 for joint filers). The phaseout also applies to the new $500 credit for other dependents.
- 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 online tax filing to file your taxes you can eliminate the process of determining which tax forms you need to use. All you have to do is answer some simple questions and they will help you claim the child tax credit and fill in the right forms for you. Taxpayers should also know that filing taxes online is their key to saving money on filing fees.