Eight Facts On The Child Tax Credit.
Qualifying for the child tax credit will depend on your income and age of the child. The credit is in addition to childcare credit. To understand how this credit profits your family, here are ten crucial facts from the Internal Revenue Service regarding the Child Tax Credit.
To qualify for the credit children must meet certain requirements that include age, relationship, support, dependent, citizenship and residence.
1. Age Qualifications:
A child needs to be 16 years or younger at the conclusion of 2015. Therefore, a child must be under the age of 17.
2. Relationship of the child:
When filing your taxes, you have the right to claim your biological children, stepchildren, siblings or step-siblings. You can also claim any grandchildren, great-grandchildren or adopted children. You must legally adopt the adopted child. When filing your taxes, you can also claim foster children if the court or other agency put them under your authority.
3. Financial Support:
To claim the Tax Credit, the child cannot have provided over half of their support.
On your federal tax return, you are required to claim the child as a dependent.
To claim the Tax Credit, the child must be a citizen or resident of the United States. A U.S National or U.S resident alien will also qualify for the credit.
The child needs to have lived in your home for over half of the year. The IRS Publication 972, Child Tax Credit includes some exceptions to the residency rule.
7. Income Limitations:
The credit might be reduced if your gross income is above a certain level. If you are filing a joint return, the credit will be reduced if your income is over $110,000. If you are unmarried, the credit will be reduced if your income is over $75,000. If you are married by filing a separate return, the credit will be reduced if your income is over $55,000. The credit will be decreased by $50 for each $1000 your income surpasses the amount of your income.
8. Extra Child Credit:
It is possible to claim the Additional Child Tax Credit if the amount of your credit exceeds the amount of income tax you owe.