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7 Cards in this Set
- Front
- Back
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Qualifying Child |
A qualifying child must meet all of the following:- -Be the taxpayer’s son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, or a descendant of any of them (e.g., grandchild, niece). - Under age 17 at the end of the year. - Qualifying child did not provide over half of his or her own support for the year. - Lived with the taxpayer for more than half of the year. Exception: The noncustodial parent can claim the child tax credit for a child if the custodial parent released a claim to exemption for the child on Schedule 8332, and the noncustodial parent attached the release to his or her return. - Is claimed as a dependent on the taxpayer’s return. - Does not file a joint return for the year (or files it only as a claim for refund). - Was a U.S. citizen, a U.S. national, or a resident of the U.S. |
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Exceptions to Time Lived with the Taxpayer |
A child is considered to have lived with the taxpayer for more than half of year if the child was born or died during the year and the taxpayer’s home was this child's home for more than half the time he or she was alive. Temporary absences by the taxpayer or the child for special circumstances, such as for school, vacation, business, medical care, military service, or detention in a juvenile facility, count as time the child lived with the taxpayer. |
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Amount of Credit |
The maximum credit claimed is $1,000 for each qualifying child |
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Limits on the Credit |
The credit is reduced if: - Taxpayer’s tax liability is less than the credit (unless the taxpayer is entitled to an additional refundable credit), or - Taxpayer’s modified AGI is above the threshold amount for each filing status shown below: Single, Head of Household, Qualifying Widow(er) -$75,000 Married Filing Jointly -$110,000 Married Filing Separately- $55,000 |
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Claiming the credit |
To claim the credit use Form 1040, 1040A, or 1040NR, not Form 1040EZ |
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Additional Child Tax Credit |
The additional child tax credit is a refundable tax credit. This credit may give the taxpayer a refund even if the taxpayer does not owe any tax. The additional child tax credit is figured on Schedule 8812 and carried to Form 1040 as a payment on line 67, or Form 1040A, line 43. |
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Foreign Earned Income |
A taxpayer cannot take the additional child tax credit if he or she claims a foreign earned income or housing exclusion on Form 2555 or Form 2555-EZ. |
