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Child Tax Credit

21.02.2012 01:46:24

The child tax credit represents a tax credit granted to people with qualifying children under 17 years old. The credit’s amount largely depends on your income and can reach up to $1,000 per child. It is the organization known as Internal Revenue Service (IRS) that approves applicants and grants credits.

Consider the following facts and requirements before applying for your child tax credit:

  1. Eligibility:
    • Your child must be 17 years old and younger
    • Your child and you must be US citizens
    • Your child and you must both have a permanent residence in the USA
    • You can only claim the child tax credit for a child, who is your son, daughter, foster or step child. Additionally you are eligible to claim a tax credit on your siblings or any dependants, including your nieces, nephews, and grandchildren.
    • If you apply for an adopted or foster child, you must show evidence of relationships
    • The child must live during the last 6 months with you
    • Married couples must earn no more than $110,000
    • The income of single parents must not exceed $75,000
  2. Amount. You can count on the reduction of your federal income tax by the amount of up to $1,000 per each child meeting the above criteria and that is 17 years old and younger.
  3. The child must not earn or otherwise provide more than half of the amount necessary for its own living.
  4. You must show evidence that the child depends on your federal tax returns.
If you do not meet the above requirements, you should consider other options such as additional child tax credits.

Tax Evasion

Tax evasion is a term used to denote the process of intentional evasion from paying tax bills, i.e. when you fail to pay taxes, when they are due. Because the process is illegal, you may find yourself in paying large amount of penalties and other related fees. Thus, it is your interest to pay taxes in a timely manner.

What is Earned Income Tax Credit

The Earned Income Tax Credit, or EITC, is a federal program especially designed for working people, who earn low salary or wages. The program is aimed to assist American families with children under 17 years old and provides some additional income by means of tax refunds. Among the EITC’s goals is the encouragement of unemployed citizens to search work and get certain percents of the previous tax bills.

Qualifying families can also file applications for child tax credit that will guarantee up to $1,000 per each child. If compared with simple child support tax deduction , child tax credit is more beneficial, since the money isn’t deducted from your future tax bills, but is rather obtained from your previous bills, reducing their amount.

Child Tax Credit 2009

In the course of time, the amount and terms can be modified by the Internal Revenue Service; although they are not changed significantly. For example, the figures for the 2009 child tax credit are almost the same as the ones for the 2011 tax credit.

Be sure to report the Tax Identification number, or TIN, for each eligible child. In most cases, Social Security number will do.

Due to the fact that the child tax credit is used to cut down your tax amount, it may also be used to reduce the amount withheld from your salary checks.

Remember that in most cases, the child tax credit cannot be refunded. This means that if your tax bills are lower than your credit amount, this will only reduce the tax you owe to zero, while the unused credit will be voided.

Child Tax Credit 2010

Despite the child tax credit is nonrefundable, there are some situations, when it can be refunded, especially if it is much higher than your tax bills. Such a refundable credit is known as the Additional Child Tax Credit 2010 . If you have qualifying children aged under 17 and this is your first time to apply for the tax credit, you can get an additional child tax credit that will allow you to cover all your tax payments.

To get the additional child credit for 2010 , you will need to follow the same instructions applied to the child tax credit. However, if you have an income of over $3,000, you can get no more than fifteen percent of it. Otherwise, your application will be considered for an additional child tax credit 2011.

Child Tax Credit 2011

The amount paid within the limits of the 2011 child tax credit is kept almost unchanged for the year of 2012. Due to difficult economic times, the criteria for getting a child tax credit have been slightly changed to the following:
  • If you have one or two children, the refundable percentage of your child tax credit will not exceed 15% of the income you’ve earned over $3,000.
  • If you have three or more children, you can count on getting tax refunds on the unused percentage of your tax credit or the amount paid to you by social security minus your income credit.
Any child dependant on your income can qualify for a child tax credit. Thus, you can get a credit per each step child, foster child, nephew, niece, and even grandchildren. They should be US citizens, reside with you for more than 6 months and be aged under 17.

Furthermore, remember that if your income exceeds $110,000 (for married couples) or $75,000 (for single parents), you may not qualify for the child tax credit.

Child Tax Credit Worksheet

If your job cannot guarantee stable returns that are sufficient for your living and the support for your young dependants, you can take advantage of the income tax credit , also known as working tax credit. To apply, you must meet the eligibility criteria listed below:
  • You must work 30+ hours a week
  • You must have 1 or more children, who depend on your income and are no more than 17 years old
  • If you have a certain disability, but work 20+ hours per week
  • If you are a full-time student aged 16-20 years old
  • Older people and those, who take a break from work for at least 6 months can also apply for a working tax credit .

Child Tax Credit Calculator

It is important to understand your chances to get your application approved. Consider a child tax credit calculator that will show the exact figures and amounts you can get as part of the child tax credit program. You can also calculate the amount of your carbon tax bills.


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