Family tax benefits exist for families with dependent children to ease the costs associated with raising children, and each child tax credit eligibility consists of as much as $1,000 per qualifying child. Since it is an actual tax credit, it cuts down the tax bill as opposed to just providing a tax deduction. It is important to become educated about all of the possible child and dependent tax benefits to get the most out of them.
Child Tax Credit
As explained in IRS
publications, the child tax credit is for individuals and families who
have one or more qualifying children. As a separate tax benefit, it may
be claimed in addition to the Credit for Child and Dependent Care
expenses. Read Publication 3965, 3961 ENG/SP, 972 and Form 8812 for
official information about child tax credits and other available
benefits which relate to dependent children.
Child Relationship Identity
qualify, the child must be a daughter, son, a legally adopted child
stepchild, brother, sister, foster child, stepsister, stepbrother or an
actual descendant of any of those individuals. This may include a niece,
nephew or grandchild. You must claim the child as a dependent on your
Age and Support Test
Each child must be
under the age of 17 at the end of the tax year to qualify and have not
have provided over half of their own support.
Citizenship and Residency
for whom tax credits are taken must be U.S. citizens, or have U.S.
resident alien or U.S. national status. The child must have lived with
the person claiming the credit for over half of the year. See IRS
Publication 972, Child Tax Credit for some exceptions to this rule.
child tax family benefit is modified according to adjusted gross
income. Married taxpayers filing on a joint status return may not claim
the benefit if income exceeds $110,000. Married taxpayers who file
separate returns can earn $55,000. Other taxpayers can earn up to
$75,000 for the credit. Also, the tax credit may be limited according to
the amount of income tax owed, in addition to alternative minimum taxes
- Home & Business Finances
- Child Tax Credit Eligibility: How to Know If You Qualify
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