Tax Facts: How the Child Tax Credit can help you.

Hit Counter

In 1997, the Taxpayer Relief Act (PUBL. 105-34)was passed by congress and signed by the President, given a tax credit of $400 to taxpayers. Today, the tax credit is $1,000 for each qualifying child you claim on your tax return. This tax provision may cut your taxes by that amount and it is very important for you to know if you qualify for this non-refundable tax credit.

What test is required?
1- Age Test. The age of the child has to be 17 or under 17 by the end of the tax year.
2- Relationship test. The child must be related to the taxpayer. The word related is defined by the IRS; so must look at what the IRS included in that relationship.
3- Fifty percent "Support Test" must be made.
4- A Dependent test must be claimed by the taxpayer.
5- A maried child can't file a joint return.
6- A citizenchip test must be made.
7. There is also a residency test to be made.

These test have some exceptions and included other provisions not discussed here. Additionally, This credit phased out for high income families.

What form is required to file?
Taxpayers' must file Form 8812 and attach to your Income Tax form(s) (i.e., 1040s').

Consult your Tax Accountant for more information and clarification.

(Source: http://www.irs.gov type Form 8812 for more info.)

Revised: 1-17-2015