Question
Federal Government > Tax > Earned Income Tax Credit
Lower income limits on Child Tax Credit to enable 600,000 more families to benefit from the credit
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Background
In the United States a taxpayer can claim a $1000 (from 2003 on) per child tax credit if he has a ""qualifying child"". According to the IRS, the child must be claimed as dependent which requires the child to have a Social Security number and be:
- Related to the taxpayer (son, daughter, stepson, stepdaughter, or decedent, brother, sister or their descendant, or foster child).
- Under the age of 17 as of the end of the year. This means that if your child turns age 17 during the tax year, the child is not eligible for the child tax credit. This is true even if his or her 17th birthday falls on Dec. 31. If the child is age 17 anytime during the year, he or she is not qualified for the credit.
A citizen, national, or resident of the U.S.
The child tax credit reduces tax liability. For a married couple filing jointly, the credit begins to be reduced if the adjusted gross income exceeds $110,000. The credit is reduced by $50 for each $1,000 (or fraction thereof) the couple earns above this amount. For many families, the child tax credit will exceed their tax liability. In many such cases, the unused portion of the child tax credit is refundable as the ""additional child tax credit."" The amount that is available as a refund depends on the amount of earned income, and in certain circumstances the amount of Social Security and Medicare taxes paid.
see more on Wikipedia
- Related to the taxpayer (son, daughter, stepson, stepdaughter, or decedent, brother, sister or their descendant, or foster child).
- Under the age of 17 as of the end of the year. This means that if your child turns age 17 during the tax year, the child is not eligible for the child tax credit. This is true even if his or her 17th birthday falls on Dec. 31. If the child is age 17 anytime during the year, he or she is not qualified for the credit.
A citizen, national, or resident of the U.S.
The child tax credit reduces tax liability. For a married couple filing jointly, the credit begins to be reduced if the adjusted gross income exceeds $110,000. The credit is reduced by $50 for each $1,000 (or fraction thereof) the couple earns above this amount. For many families, the child tax credit will exceed their tax liability. In many such cases, the unused portion of the child tax credit is refundable as the ""additional child tax credit."" The amount that is available as a refund depends on the amount of earned income, and in certain circumstances the amount of Social Security and Medicare taxes paid.
see more on Wikipedia
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