If you are married, in most cases it is more beneficial to file jointly and claim your children as dependents.
If
you are not married or if you decide to file as Married filing
separately. it is usually more beneficial for the parent with the higher
income to claim the children. However, in case that parent's income is
so high to prevent him/her from obtaining the Earned Income Credit or
the Child Tax Credit, then the other parent should claim the children.
The
child tax 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. 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.
To
qualify for the Earned Income tax credit, adjusted gross income must be
less than $15,010 with no qualifying child, less than $39,617 with one
child, less than $45,007 with two children or less than $48,340 with 3
or more children. In all cases, investment income must be less than
$3,450 and you should be aged between 25 and 65 at the end of 2017. If you are married and file separately, you are not eligible for the EITC.
Edited 01.18.18 | 2:50 PM
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