, Answering FAQ'sTurboTax Employee
The Child Tax Credit can reduce your federal taxes by up to $1,000 for each qualifying child you have. If you were also looking to offset day care expenses while you work, see the Child Dependent Care Credit.
Unlike a tax deduction, the Child Tax Credit reduces your tax bill dollar-for-dollar. We automatically calculate the child tax credit for you, and let you know if your child doesn't qualify. The Child Tax Credit is also limited to your tax liability, and can’t reduce your tax below zero. In other words, the credit you receive cannot be greater than the tax you owe; but see the Additional Child.Tax Credit topic below.
In order to qualify for the Child Tax Credit, each child you claim must meet all of these requirements:
- The child is your dependent son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister or a descendant of any of them, and
- Is claimed as a dependent on your tax return, and
- Is under the age of 17 at the end of the year (they did not turn 17 during the year), and
- The child did not provide more than half of their own support, and
- Lived with you for more than half the year, and
- Is a U.S. citizen, U.S. national, or U.S resident alien.
Why did I get less than the maximum $1,000 credit?
Although the maximum Child Tax Credit is $1,000, you may not qualify for this amount. Your credit will be reduced if your modified adjusted gross income is more than $110,000 if Married Filing Jointly, $75,000 if Single, Head of Household or Qualifying Widow(er), or $55,000 if Married Filing Separately.
What is the Additional Child Tax Credit?
If your Child Tax Credit is limited because you don't owe a lot of taxes, you may qualify for the Additional Child Tax Credit. The Additional Child Tax Credit is the refundable portion of the Child Tax Credit, meaning you could receive some of the credit as a refund even if you don't owe taxes.
TurboTax automatically calculates the Additional Child Tax Credit for you if you qualify.