Claiming the Child Tax Credit

Tax Act

Claiming the Child Tax Credit for 2009

The Child Tax Credit is an important and beneficial tax credit that you should file for whenever you are eligible. You can receive a tax credit for up to $1,000 for every child that qualifies. Children must be under the age of 17 in addition to other stipulations.

The qualifications for a child include age, relationship, support, dependent, citizen, and residence. The first test we have already mentioned, the child has to be younger than 17 when the tax season ends. To pass the relationship test, the child has to be your child, your step-child, your sibling, your step-sibling, adopted, a foster child or a child of one of these.

You have to claim the individual as your dependent when you file and they must be financially dependent upon you. US citizens, nationals, and resident aliens are the only groups to pass the citizenship test to claim the Child Tax Credit. And they must live with for the majority of the year.

Like many tax credits, this one phases out for income earners. The phase-out begins at $110,000 adjusted gross income when filing jointly with your spouse and $55,000 when filing separately. Other filing statuses phase out beginning at $75,000. Finally, if you are eligible for more tax credit than you have paid in, file for the Additional Child Tax Credit.

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