Is there a new law that you can only claim two children for child tax credit this year?

Question

My best friend got $8000 back last year with her three children. This year they told her she couldn't get the child tax credit for all three. Is there a new law? I was wondering because I have a new baby and now we have three total. I was realy needing the extra credit so we can get a van. Has any one already filed taxes who have more than two children and if so how many could you claim the child tax credit for?

Answer 1

No there is no limit to the number of children claimed for the Child Tax Credit. There is however a Limit on The Earned Income Credit

Child Tax Credit Publication 972
http://www.irs.gov/publications/p972/ar02.html

Earned Income Credit
http://www.irs.gov/individuals/article/0,,id=96406,00.html

1-800-829-1040

Answer 2

You get a $1000 tax credit for each child for as many as you have who are under 17, as long as you owe that much tax. It can only reduce your tax to zero. But if you have three children and can't take the full child tax credit because you don't owe $3000, then you can probably get some of the balance through the additional child tax credit.

It's the EIC that only considers up to 2 kids, and you don't get more for having over 2.

Answer 3

I have 3 children and I thought you can only claim 2 but after I filed only 2 kids here I find out your state goes up with 3 but not federal. It gave me a 1200 credit fro my third child on my state but federal will only let you get extra money for 2! So I have to file an ammended return now!

Answer 4

You may be able to claim a child tax credit if you have a qualifying child.

A qualifying child is a child who:

Is a United States citizen, a United States resident, or a national of the United States,
Is under age 17 at the end of the calendar year in which your tax year begins,
Is your son, daughter, stepson, stepdaughter, legally adopted child, or a child placed with you for legal adoption, brother, sister, stepbrother, stepsister, foster child placed with you by an authorized placement agency or by a court order, or a descendant of any such person, and who
Shares with you the same principal place of abode for more than one-half of the tax year, or is treated as your qualifying child under the special rule for parents who are divorced, separated, or living apart. For more information, refer to Publication 501, Exemptions, Standard Deduction, and Filing Information.

The credit is limited if your modified adjusted gross income is above a certain amount. The amount at which this phase-out begins depends on your filing status. You can find the phase-out range for your filing status in the Publication 972, Child Tax Credit.

In general, the child tax credit is limited also by the sum of your income tax liability and any alternative minimum tax liability. For example, if the amount of the credit is $600, but the amount of your income tax is $500, the credit ordinarily will be limited to $500. However, there are two exceptions to this general rule. First, if the amount of your child tax credit is greater than the amount of your income taxes, you may be able to claim an "additional" tax child tax credit if your earned income exceeds the base amount for the year. Second, if you have three or more qualifying children, you may be able to claim an additional child tax credit up to the amount of Social Security taxes you paid during the year, less any earned income credit you receive. If you qualify under both these exceptions, you receive the greater of the two additional amounts. You can find the base amount, as well as more information on qualifying with three or more children in the Publication 972, Child Tax Credit.

The total amount of the child tax credit and any additional child tax credit cannot exceed the maximum amount allowed for the taxable year. You can find the maximum amount allowed in Publication 972, Child Tax Credit.

Individuals entitled to receive the child tax credit and additional child tax credit may also be eligible to receive the child and dependent care credit and the earned income credit.

Follow your Form 1040 Instructions or Form 1040A Instructions and complete the child tax credit worksheet. Certain taxpayers may also have to complete worksheets in Publication 972, Child Tax Credit. Use Form 8812 to figure the additional child tax credit and attach it to your return. For more information on the child tax credit, refer to Publication 972, Child Tax Credit.

goto http://www.irs.gov/publications/p972/index.html