Child Tax Credit
Tax Offset
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Child Tax Credit
The credit is worth up
to $1,000 for each qualifying child at the
end of the year. If you have 4 children,
the credit can cut your tax bill by up to
$4,000.
Remember, a credit offsets your
tax bill dollar for dollar, and the child must
meet 5 criteria for you to receive child-related
tax benefits.
The child
must:
-
be younger than 17
-
be your son, daughter, stepchild, foster
child, brother, sister or a descendant of
any of them
-
not have provided more than half of
his or her own support
-
live with you more than half the year
-
be a U.S. citizen, U.S. national or
resident of the U.S.
The credit is limited if
your modified adjusted gross income is
above a certain amount. The amount at
which this phase-out begins varies
depending on your filing status:
-
Married Filing
Jointly $110,000
-
Married Filing
Separately $ 55,000
-
All others $ 75,000
The
credit amount decreases by $50 for every
$1,000 or fraction of $1,000 that it exceeds
the limit.
Additionally, the Child Tax Credit is
generally limited by the amount of the
income tax you owe as well as any
alternative minimum tax you owe.
If your Child Tax Credit is greater than
the amount of income tax you owe, you
may be able to claim some or all of the
difference as an “Additional” Child Tax
Credit. The Additional Child Tax Credit
may give you a refund even if you do not
owe any tax. The total amount of all
Child Tax Credits cannot exceed the
maximum of $1,000 for each qualifying
child.
If your credit is limited by your tax
and your earned income is more than
$11,750, you may be eligible for additional Child
Tax Credit. You also may be eligible for
this credit if you have at least 3 eligible
children and the Social Security and Medicare
tax you paid is more than your Earned Income
Credit.
For more information see
IRS Publication 972
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