What is the Child Tax Credit?
By Tim Frye
Children are the future. And I am sure that your children are the most precious in the entire world. They are priceless. Well, actually, to the IRS they are actually worth a specific amount, depending on their age and there living situation. There can be several different benefits in claiming dependents on your tax return, especially if they are your own children. There is the Earned Income Credit, which is dolled out in greater proportions if you have qualifying dependents. You get the extra $3,800 for your dependent's personal exemption, which can be an especially potent deduction if you sit in high marginal tax brackets. Then there is the Child Tax Credit. The Child Tax Credit is a credit that is offered to those taxpayers who have dependents that are under the age of 17 by the end of the tax year, and it can eat away at tax liability up to $1,000 per child, depending on the taxpayers earned income totals. Let's discuss the specifics of the Child Tax Credit, and it's refundable portion, the Additional Child Tax Credit...
Qualifications for the Child Tax Credit
There are obviously certain qualifications that must be met in order for a taxpayer to gain access to the Child Tax Credit. The Child must meet the following requirements:
-Relationship:Dependent must either be son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, or a descendant of any of these.(Adopted children do qualify)
-Support: Child must not have provided more than half of his or her support
-Dependent: You must claim the child as a dependent on your tax return
-Citizenship: Child in question must be either U.S. Citizen, U.S. National, or a U.S. Resident Alien
-Residence: Child must have lived with the taxpayer for more than half of the tax year in question