Child Tax Credit 101 [Video]

Deductions and Credits

Learning about tax credits and deductions that you qualify for can make a big difference at tax time. If you’re a parent, you’ll be happy to know that you may qualify for the Child Tax Credit if you have children. This credit can help you decrease your tax burden.

How Much is the Child Tax Credit?

You can claim $1,000 per dependent child under 17. The Child Tax Credit is a nonrefundable tax credit, meaning it can reduce your taxes owed, but you will not receive a refund from it (with few exceptions).

How Do I Qualify for the Child Tax Credit?

In order to claim the full tax credit, you must meet the IRS requirements, these include:

  • Your child is under the age of 17 at the end of the year and either a US citizen, U.S. National, or U.S. resident alien.
  • The child must be your qualifying child (son, daughter, brother, sister, stepbrother, stepsister, half brother or sister or descendant of them.
  • Child is claimed as a dependent
  • The child has lived with you for more than half the year.
  • Child did not provide over half of his or her own support.
  • Your household income is below the phase out threshold.
    • Married (Filing Joint): $110,000
    • Married (Filing Separately): $55,000
    • Single: $75,000

Check Out Other Tax Credits

While you’re claiming the Child Tax Credit, you should see if you qualify to receive the Child and Dependent Care Credit. You may be able to further reduce your tax burden!

Comments (4) Leave your comment

  1. I’m not sure why turbotax is saying I don’t qualify for the child tax credit when I meet every requirement listed. I have 2 children well under the age of 17.

  2. Amen Brother!!! I accidentally entered the wrong year of birth for the child. Unlike you, I have not filed, so I can fix it. Sorry to hear of your travail, but please know that your post allowed me to fix the problem. Thank you!!!

  3. I recently filed my taxes on Turbo Tax(i’m told this is govt’ affiliated,not sure)and i’m not sure why but I thought I checked it atleast 5 times. Anyway I couldn’t figure out why I wasn’t getting the child tax credit when my daughter is well under the age. Then I went through the family history and found that I had put in the wrong year for her. I understand now that I have to wait until 2-18-2010 before I can ammend since I had already sent it and was approved. It has to be done via snail mail on a 1040x form.As broke as I am this really makes me mad,first for the mistake and second that it will take so long. Oh well I take it this is my only option and my patience will be tested. Anyone know otherwise? Thanks for listening.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s