Child Tax Credit 101 [Video]

Deductions and Credits Father And Son Goofing Around In Room

The article below is accurate for your 2017 taxes, the one that you file this year by the April 2018 deadline. Tax information below will change next year for your 2018 taxes, but won’t impact you this year. Learn more about tax reform here.

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 dollar for dollar.

For tax year 2018 (taxes you file in 2019), the Child Tax Credit will increase to $2,000 per dependent child under 17. The new tax law also adds a new, non-refundable credit of $500 for dependents other than children. Finally, it raises the income threshold at which these benefits phase out from $110,000 for a married couple to $400,000.

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)
  • Your child is claimed as a dependent
  • Your child has lived with you for more than half the year
  • Your 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!

Don’t worry about knowing about this tax benefit. TurboTax will ask you simple questions about you and give you the tax deductions and credits you’re eligible for based on your answers. If you have questions, you can connect live via one-way video to a TurboTax Live CPA or Enrolled Agent to get your tax questions answered. A TurboTax Live CPA or Enrolled Agent can also review, sign, or file your tax return.

Comments (5) Leave your comment

  1. The deductions reduce taxable income and their value thus depends on the taxpayer’s tax rate, which rises with income. Credits reduce taxes directly and do not depend on tax rates.

  2. 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.

  3. 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!!!

  4. 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.

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