facts about child care tax creditThe Child Tax Credit 2012 – 2013 is an significant tax credit that may be worth as much as $1,000 per be eligible child depending upon your earnings. Here are 10 vital details from the Internal Revenue Service about this credit and how it may advantage your family.

    Amount – With the 2013 – 2014 Child Tax Credit, you may be bright to decrease your federal income tax by up to $1,000 for each qualifying child below the age of 17.

    Qualification – A qualifying child for this credit is someone who meets the qualifying criteria of 6 tests: age, connection, support, dependent, nationality, and residence.

    Age Test – To be eligible, a child must have been below age 17 – age 16 or younger – at the end of 2010.


    affiliation 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 persons, which includes your grandchild, niece or nephew. An adopted child is for all time treated as your own kid. An adopted child includes a child officially placed with you for lawful acceptance.

    Support Test – In order to claim a child for this credit, the child must not have provided more than half of their own support.

    Dependent Test – You must claim the child as a dependent on your federal tax return.

    Citizenship Test – To meet the citizenship test, the child must be a U.S. resident, U.S. national, or U.S. resident alien.

    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 in Internal Revenue Service Publication 972, Child Tax Credit.

    Limitations – The credit is limited if your modified AGI is above a positive amount. The amount at which this phase-out begins varies depending on your filing status. For married taxpayers filing a joint return, the phase-out begins at $110,000. For married taxpayers filing a separate return, it begins at $55,000. For all other taxpayers, the phase-out begins at $75,000. In addition, the Child Tax Credit is generally limited by the amount of the income tax you owe as well as any alternative minimum tax you owe.

    extra Child Tax Credit 2012 – 2013 – If the amount of your Child Tax Credit is greater than the amount of income tax you owe, you may be able to claim the Additional Child Tax Credit.

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