The Child Tax Credit is an important tax credit worth as much as $1,000 per qualifying child depending upon your income. Here are 8 important facts from the IRS website
about this credit and how it may benefit your family.
- With the Child Tax Credit, you may be able to reduce your federal income tax by up to $1,000 for each qualifying child age 16 or younger.
- A qualifying child for this credit is someone who meets the qualifying criteria of six tests: age, relationship, support, dependent, citizenship, and residence.
3). Age Test
- To qualify, a child must have been age 16 or younger at the end of 2010.
4). Relationship Test
- To claim a child for purposes of the Child Tax Credit, they must either be your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister or a descendant of any of these individuals, which includes your grandchild, niece or nephew. An adopted child is always treated as your own child. An adopted child includes a child lawfully placed with you for legal adoption.
5). Support Test
- In order to claim a child for this credit, the child must not have provided more than half of their own support.
6). Dependent Test
- You must claim the child as a dependent on your federal tax return.
7). Citizenship Test
- To meet the citizenship test, the child must be a U.S. citizen, U.S. national, or U.S. resident alien.
8). Residence Test
- The child must have lived with you for more than half of 2010. There are some exceptions to the residence test, which can be found by visiting the IRS website