Child Tax Credit

Am I entitled to child tax credit? Find out at Paywizard.org.

 

The child tax credit is worth up to $1,000 per child under the age of 17. 

How to qualify?
A qualifying child for purpose of the child care tax credit:

  • is your son, daughter, stepchild, foster child, brother, sister, stepsister, stepbrother, or a child of any of them.

  • was under age 17 at the end of this tax year

  • did not provide over half of his or hers own support in this tax year

  • lived with you for more than half of this tax year

  • is claimed as a dependent on your return

  • was a U.S. citizen, a U.S. national, or a U.S. resident alien.

NOTE:
Qualifying for the child tax credit mirrors the rules for dependents. However there are notable differences, so please click on the next link to read the information about a qualifying child as a dependent.

Phaseout Child Tax Credit
The child tax credit starts to be reduced when your income reaches the following thresholds:

Single

$75,000

Married filing jointly

$110,000

Married filing separately

$55,000

Head of Household, Qualifying widow(er)

$75,000

In the phaseout range the child tax credit is reduced by $50 for each $1,000 of income above these threshold amounts. The phaseout ranges are set by statute and are not indexed annually for inflation.

Additional Child Tax Credit
If you cannot take full advantage of the child tax credit because the credit is more than the taxes you owe, you may receive a payment for some or all of the credit not used to offset your taxes. It's a refundable credit, which means that you may receive refunds, even when you do not owe any tax.

If you have one or two children, the refundable portion of the child tax credit is the smaller of the unused portion of the child credit or 15% of your earned income over $3,000. If you have three or more children, the refundable portion of the child tax credit is the smaller of the following amounts:

  1. the unused portion of the child tax credit,orthe larger of either:

    • 15% of your earned income over $3000, or

    • the sum of social security and medicare taxes paid minus the earned income credit.

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