Do you have a child under the age of 17? If so, you may be eligible to claim the Child Tax Credit, in which each child is worth a tax reduction of up to $1,000. In situations where the Child Tax Credit is worth more than the amount you owe in income tax, the Additional Child Tax Credit will allow you to claim the difference as a refund, even if you haven’t paid anything in taxes.
To qualify for the Child Tax Credit, you must meet the following requirements:
- Your child was 16 years old or younger by the end of the tax year
- The child is one of the following relationships: son, daughter, foster child, adopted child, stepchild, brother, sister, stepbrother, stepsister, grandchild, niece or nephew
- You provided more than half of the child’s support for the year
- You claimed the child as a dependent on your tax return
- The child is a U.S. citizen, national, or resident alien
- With few exceptions, the child must live with you for over six months of the tax year
- You have an adjusted gross income of less than $75,000 for single filers ($55,000 married, filing separately, and $110,000 for joint married filers). In some cases, those with higher AGI’s who meet all the other requirements may still qualify for a portion of the credit.
If these requirements apply to you, then you can save some money at tax time with the Child Tax Credit.