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.

1). Amount - 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.
2). Qualification - 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.

Updated 3/24/2011