The Child Tax Credit

by | Mar 12, 2016 | Making IRS problems less taxing

If you’re eligible for the Child Tax Credit, you could get up to $1,000 per child 

The Child Tax Credit may save you money if you have a qualifying child. Here’s what you should know about this credit.

  • Amount – The Child Tax Credit may help reduce your federal income tax by up to $1,000 for each qualifying child that you are eligible to claim on your tax return.
  • Qualifications – For this credit, a qualifying child must meet several requirements. To find out more, read Publication 972, Child Tax Credit.  Or if you prefer to have your own team of Tax Experts handle your taxes: Contact Us.
  • Limitations – The Child Tax Credit is subject to income limitations and may be reduced or eliminated depending on your filing status and income.
  • Schedule 8812 – If you qualify to claim the Child Tax Credit, make sure to check whether you must complete and attach Schedule 8812, Child Tax Credit, with your tax return.
  • Additional Child Tax Credit – If you qualify and get less than the full Child Tax Credit, you could receive a refund even if you don’t owe any tax. However, if you file Form 2555, Foreign Earned Income, or 2555-EZ, Foreign Earned Income Exclusion you cannot claim the additional child tax credit.

Be aware that you, and the child you’re claiming, must have a Social Security number or an ITIN by the due date of your return (including extensions) or you can’t claim the Child Tax Credit or the Additional Child Tax Credit on either your original return or an amended return, even if you get an SSN or ITIN at a later date. You can use the Interactive Tax Assistant tool on IRS.gov to see if you’re eligible to claim the Child Tax Credit. If you need help Filing Tax Returns or Dealing with the Time and Trouble that is the IRS – Contact Us Today.