How to Claim Child Tax Allowances

A 1040 tax form

Child tax allowances are most commonly referred to as child tax credits, both by tax filers and the IRS. The maximum value of the credit is $1,000 per qualifying child. This credit is claimed on the 1040 series of forms used by most Americans when filing their income tax returns whether via paper, online or through the hiring of a tax specialist. Filling out these forms properly requires attention to detail to make sure your child is claimed properly.

Instructions

1. Determine if your child is a qualifying child through the use of IRS Publication 972, Child Tax Credit. Relatives, including adopted children, under age 17 who did not provide over half of their own support and who lived with you for over half of the year are qualifying children provided they were claimed as a dependent on your return and are a U.S. citizen, national or resident alien.

2. Make sure there are no limits on your child tax credit. If you do not have tax to reduce through the use of the credit, you will have to apply for the additional child tax credit separately from the usual child tax allowance. Earnings over $110,000 a year for a married couple filing jointly, over $55,000 for a married couple filing separately and over $75,000 for a single head of household also cause reductions in the child tax credit.

3. Use the worksheet and instructions present in your 1040, 1040A or 1040NR form to determine your child tax credit. Use the worksheets in IRS Publication 972 to calculate your tax credit if the worksheet in your 1040 series tax form directs you to do this based on certain types of income or credits you may have earned during the tax year.

4. Claim your child tax credit by entering the amount of your child tax credit, as determined by your worksheets, on line 51 of Form 1040, on line 33 of Form 1040A and on line 47 of form 1040 NR.

References

• IRS: Publication 972