What are the limitations such as number of kids, AGI ceiling...etc.?
2006-10-11 13:16:35 · 4 answers · asked by JPS0909 1 in Business & Finance ➔ Taxes ➔ United States
With the Child Tax Credit, you may be able to reduce the federal income tax you owe by up to $1,000 for each qualifying child under the age of 17.
A qualifying child for this credit is someone who meets the following criteria:
• Dependent Is claimed as your dependent
• Age Was under age 17 at the end of 2005
• Relationship Is your son, daughter, adopted child, grandchild, stepchild or eligible foster child, your sibling, stepsibling or their descendant
• Citizenship Is a U.S. citizen or resident alien
The credit is limited if your modified adjusted gross income is above a certain amount. The amount at which this phase-out begins varies depending on your filing status:
• Married Filing Jointly $110,000
• Married Filing Separately $ 55,000
• All others $ 75,000
2006-10-11 16:01:57 · answer #1 · answered by RamsGod 3 · 2⤊ 0⤋
I"d like to add to Ram's answer. Not only can the Child Tax Credit reduce your tax, but it is possible that if you fit income guidelines and have already reduced your tax to zero, you can get what is called the Additional Child Tax Credit, which is a refundable credit. This means that you can actually use this credit to get back more money than you put in, similar to the Earned Income Credit. Both credits can be used on the same return, as well. Be sure not to cheat yourself by neglecting the ACTC.
2006-10-12 15:33:42 · answer #2 · answered by Katie Short, Atheati Princess 6 · 0⤊ 0⤋
Don't you love folks who "answer" your question by sending you to the irs website with no guidance at all? Ram's God is correct, give him the points.
2006-10-12 09:11:43 · answer #3 · answered by Jeff C 2 · 1⤊ 0⤋
You can find that on the IRS website.
IRS.gov
2006-10-11 20:21:44 · answer #4 · answered by The Garage Dude 4 · 0⤊ 2⤋