How to Qualify a Sibling for a Child Tax Credit

The U.S. Government recognizes that rearing children involves a significant amount of money. The government also knows that many families are caring not just for their own children, but for grandchildren, foster children, nieces and nephews and even siblings. To assist taxpayers who have taken on this responsibility, they offer a tax credit of up to $1,000 for each qualifying child. Here's how to qualify.

Difficulty: Moderate

Instructions

1. Know that the child tax credit is only paid for children who are under 17 years of age and are U.S. citizens or residents.

2. Determine how long your sibling has lived full-time in your home. To qualify, he or she must have lived with you for more than 6 months. A child that goes to a boarding school or is temporarily absent because of visits to other relatives is still considered to be living with you.

3. Calculate how much your sibling contributed to his or her own expenses. If he or she received Social Security payments, held a job or received support money from relatives, these count as his or her contribution. To qualify for the credit, your sibling's contribution must be less than half of his or her total living expenses.

4. Find the tax identification number for your sibling. In most cases, this is the Social Security number. If your sibling doesn't have a tax identification number, you can apply for one through the IRS, either at a local office or online.

Tips & Warnings

• If the child tax credit results in a large refund, consider making changes to your withholding so you can have more money in your paycheck next year. Your employer can help you do this.
• If your household income is high enough, your credit will be reduced.

Resources

• Find tax information, forms and instructions at the IRS web site.