How to Qualify a Niece or Nephew for a Child Tax Credit

The child tax credit is a credit given for families with dependent children that meet certain requirements. These requirements apply even to extended members of the family, like nieces and nephews, which are considered your dependents. To claim the child tax credit for a niece or nephew living in your home, several conditions must be met.

Difficulty: Moderately Challenging

Instructions

1. Make sure your niece or nephew is not being claimed on anyone else's tax form for the calendar year in which you are filing.

2. Check the ages of your dependents. They must be under the age of 16 or younger at the end of the year.

3. Verify that they are U.S. citizens.

4. Confirm that your niece or nephew is related to you by birth, marriage, adoption or foster arrangement.

5. Calculate your modified gross income. You modified gross income must be below $75,000 for single, head of household or qualifying widow(er). For married filing jointly the modified gross income cannot exceed $110,000. For married filling separately it can't go over $55,000.

6. Compare your child tax credit to your tax liability--line 44, form 1040. If your tax liability is more that your tax credit, you are not eligible.

Tips & Warnings

• If your income is above any of the aforementioned limits, use Publication 972 Child Tax Credit to calculate the amount of child tax credit you are eligible for.
• Fill out IRS Form 8901 if you are claiming a child for the child tax credit that is not your dependent. In most cases you must be able to claim a child as your dependent in order to qualify for the child tax credit.