Child Tax Credit Details
If you have children you might as well take advantage of this when it comes time to filing your income tax return. After all, you pay enough to take care of your child that getting something in return is your right. That being said, you need to know the ins and outs of the child tax credit. You want to make sure that you qualify for this credit.
Generally speaking, you can take a child tax credit of up to $1k per child. The qualifications for the child tax credit include: a qualifying child must be under the age of 17, and your adjusted gross income cannot be above a certain limit.
More information on a qualifying child includes:
1. At the end of the tax year the child must have been age 16 or younger.
2. A United States citizen.
3. Claimed as a dependent. You can also file Form 8901 for children who qualify and cannot be considered a dependent.
4. Must be your biological child, or related to you by marriage or adoption.
But what about the income limit? Do I make too much money to take advantage of the child tax credit?
1. The child tax credit begins to phase out if your modified adjusted gross income is more than $75k when filing single.
2. When married filing jointly the income level is $110k.
3. When married filing separately the income level is $55k.
If your income is above these levels it does not mean that you are disqualified from receiving the child tax credit. Instead, you need to use Publication 972 Child Tax Credit to determine how much of a credit you can take.
There are some requirements that govern the child tax credit, and you should be aware of them when filing your final return.
