The child tax credit allows those with children to receive a tax break. As with other tax laws, the qualifications can be complex.
How it Works
The maximum credit is $1,000 per qualifying child. The credit is reduced by $50 for each $1,000 of your Modified Adjusted Gross Income, over:
- $110,000 if married filing jointly
- $75,000 if single, head of household or qualifying widow
- $55,000 if married filing separately
A qualifying child is a child who:
- Is the taxpayer’s son, daughter, stepchild, foster child, bother, sister, stepbrother, stepsister, or a descendant of any of them (grandchild, niece, etc.).
- Lived with the taxpayer for more than half the tax year.
- Is under age 17 at the end of the year.
- Did not provide more than ½ of their own support during the year.
- Is a U.S. citizen, national or resident.
Common questions
Must the child be my dependent to qualify?
Not necessarily. There are a few exceptions that could still qualify your child.
My tax is zero. Can I still get the credit?
No, the CTC cannot create a refund below zero, but you could qualify for the “Additional Child Tax Credit” for any amount of the CTC that reduced your tax below zero. Income limits apply.
What if I’m divorced?
Special rules apply depending on who claims the dependent, custodial rules, and support tests. Call to review your situation.
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