Child Tax Credit Requirements

You may be entitled to extra cash from the IRS if you have an eligible child.

The federal child tax credit is a credit you can receive for supporting and caring for eligible dependent children in your household. The maximum credit you can receive per child is $1,000, and you can claim up to three children under the credit. The child tax credit is separate from other dependent-based tax credits, such as the childcare credit and earned income credit.

Refundable or Nonrefundable Credit

The child tax credit can be claimed as a nonrefundable or refundable credit. A nonrefundable credit is a credit used to offset tax on your income. It can't reduce your tax below zero. Refundable credits increase your refund. You can receive 100 percent of you child tax credit even if you have no tax due by claiming the Additional Child Tax Credit (See Resources). You have the option of using the child tax credit under either category, or combining the nonrefundable and refundable features.

Qualifying Child Requirements

Your dependent child must meet certain tests to qualify as an eligible child for this credit. Primarily, your child must be under the age of 17 at the end of the tax year, be your dependent and be your child (biological, step or foster). A qualifying relative such as a niece, nephew, brother or sister also qualifies. The child must be a U.S. citizen and must have lived with you for more than half the year in which you are claiming the credit.

Income and Filing Status Requirements

To claim the child tax credit, you must also meet income restrictions, which are based on your filing status. If you are married filing jointly, you can earn up to $110,000 in annual combined income. If your filing status is single or head of household, you can earn up to $75,000 per year and if you are married filing separately, you can earn up to $55,000.

Claiming the Credit

If you're claiming a nonrefundable child tax credit to reduce your income tax to zero, figure your credit using the worksheet provided in the 1040 individual income tax instructions. You'll claim the amount calculated on the worksheet directly on your return. You don't need to attach additional schedules under this method. If you're claiming all or a portion of the credit as a refundable credit, complete and attach Form 8812, Additional Child Tax Credit, to your return.

References

• Internal Revenue Service: Publication 972: Child Tax Credit
• Internal Revenue Service: Ten Facts About Claiming the Child Tax Credit

Resources

• Internal Revenue Service: Form 8812: Additional Child Tax Credit