What’s the Child Tax Credit and how do I qualify?
Did you know that your greatest joy can also be one your biggest tax deductions? You can get back up to $1,000 on your return if you have a child 16 or younger.
Let’s go over some of the specific qualifications for this Child Tax Credit. Your qualifying child must be 16 or younger by the end of the calendar year. He or she must be a US citizen, a US national, or a US resident alien. He or she must be your naturally born child, adopted child, stepchild, foster child, brother, sister, stepbrother, stepsister ... or be a descendant of any of them, for example, your grandchild, niece, or nephew.
Also, he or she must live with you for more than half a calendar year, and you must provide more than half of their support costs. If this child was adopted, he or she must have lived with you all year. Children also qualify if they were born or passed away during the year.
Now let’s look at some people who can qualify for the child tax credit. Meet Betty; she’s a single mom, has custody of her two kids and makes less than $75,000 per year. She qualifies. Jack and Diane qualify too. They’re married, have a 10-month old baby and together make less than $110,000 a year. If Jack and Diane file each of their returns separately, their income limit would be $55,000 per year.
If you aren’t sure if your child or dependant qualifies you for the child tax credit, don’t worry. TurboTax will guide you through it step-by-step, asking you simple questions.