Child Tax Credit
The Child Tax Credit is a nonrefundable tax credit for people who have a
qualifying child. The credit is limited to $1,000 per qualifying
child.
Qualifying Child
For the Child Tax Credit, a qualifying child is a child,
descendant, foster child, stepchild, sibling, step-sibling, or a
descendant of any of these, and all of the following must be
true:
- The child is a U.S. citizen, U.S. national, or resident of the
U.S.
- The child is under the age of 17 at the end of the current tax
year.
- The child provided less than half of his or her own support in
the current tax year.
- The child lived with you for more than half of the current tax
year.
A child is considered to have lived with you if the child was
born or died in the current tax year and lived with you the
entire time he or she was alive. Temporary absences, including
school, vacation, medical care, military service, or detention in a
juvenile facility, count as time lived with you.
Earned Income
For this credit, earned income only includes taxable earned
income and nontaxable combat pay. Earned income generally includes
salaries, wages, tips, net earnings from self-employment and other
employee pay that is taxable.
Limitations of Credit
- You must have tax liability on line 46 of Form 1040, line 28 of Form 1040A, or line 43 of
Form 1040NR. If the amount of the credit is more than your tax
liability, you must reduce the amount of the credit to no more than
your tax liability.
- If your modified adjusted gross income (MAGI) exceeds $110,000
for married filing jointly, $75,000 for single, head of household,
or qualifying widow(er), or $55,000 for married filing separately,
the amount of the credit is reduced.
For more information see IRS
Publication 972.