Up to $1,000 a child important!
You may qualify even if you do not make enough to file an income tax return. You could even get a refund. The IRS recognizes that having and raising children can create an additional financial burden and this credit gives you a “break”.
There are a few ways this can work. You may qualify to get a tax credit of $1,000 per child. The amount of child tax credit you can claim is adjusted based on your income. The credit starts to “phase out” at $110,000 if you are married and filing jointly, $55,000 if you are married and filing separately, and at $75,000 for all others.
So, even though your income may be at these levels, you may still get a portion of the allowance. On the other end, if your income is low and your child tax credit is more than you would pay in income tax, you may actually get a refund. This is called additional child tax credit. (Note: if you qualify for this you may also qualify for earned income tax credit, be sure to check it out.)
How do you know if your child qualifies? The child must be a dependent, under 19 years of age, or 24 if a student, and be a citizen or resident alien. The child must have a relationship with you, he or she can be your child, an adopted or waiting to be adopted child, a stepchild, foster child or sibling. Immigrants can claim this if you have a social security number or an individual taxpayer identification number. Non-custodial parents can sometimes claim the child tax if they claim the child as a dependent on their income tax form.
The child tax credit if different than the childcare credit. You may qualify for childcare credit if you pay someone to watch your child while you work or look for work. You should check this out too.
I know that my children are my true wealth; even the federal government and the IRS see them as a financial asset. The child tax credit and the additional child tax credit can deduct your tax burden and potentially give you a refund if you qualify. You should check this out.
More information is available through the IRS, a tax preparer, or an online tax program.
You can use the
Free Tax Estimator provided by
Turbo Tax Online to estimate your Child Tax Credit. You can also find plenty of Free help & information to
Prepare & File Your Taxes Online and get all the tax deductions and credits possible.
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