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Be sure you get advice on the Child Tax Credit . 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. If the amount of your Child Tax Credit is greater than the amount of income tax you owe, you may be able to claim some or all of the difference as an “Additional” Child Tax Credit. The Additional Child Tax Credit may give you a refund even if you do not owe any tax. A qualifying child for this credit is someone who meets the following criteria:
• Was under age 17 at the end of the tax year
• Is your son, daughter, adopted child, stepchild or eligible foster child
• Is a U.S. citizen, U.S. national, or resident of the U.S.
• Did not provide over half of his or her own support
• Lived with you for more than half of the tax year (some exceptions to this criteria do exist)
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
• Married Filing Separately
• All others
$110,000 $55,000 $75,000
You may also be eligible for a Dependent Care Reduction or a Dependent Care Tax Credit. To claim the credit for child and depend- ent care expenses, you must meet certain conditions including:
• You must have earned income from wages, salaries, tips, or other taxable employee compensation, or net earnings from self-employment.
• The payments for care cannot be paid to someone you can claim as your dependent on your return or to your child who is under age 19, even if he or she is not your dependent.
Tax Information You'll Need to Know