What is the Child Tax Credit?
This FAQ applies to 2017, the current tax year. Under the Tax Cuts and Jobs Act, the Child Tax Credit increases to $2,000 per qualifying child in tax year 2018. This FAQ will be updated with the 2018 limits in January 2019, when taxpayers start filing 2018 returns.
If you have kids, you’re probably wondering if they qualify for the Child Tax Credit. It makes sense: Each qualifying child you claim on your 2017 tax return can put up to $1,000 in your pocket.
This credit, not to be confused with the similar-sounding Child and Dependent Care Credit, is in addition to the $4,050 exemption you get for each dependent. However, not every child qualifies.
To qualify for the Child Tax Credit in 2017, your child must fill all of these requirements:
- Be born on or after January 1, 2001
- Be your son, daughter, stepchild, foster child, adopted child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of any of them (for example, a grandchild or niece/nephew)
- Have their own Social Security or Individual Tax Identification Number (ITIN)
- Have lived with you for more than half the year
- Not pay more than half their own expenses
- Be a U.S. citizen, U.S. national, or U.S. resident alien (being a resident of Canada or Mexico does not qualify)
Just remember: Once your income reaches the amounts below, your credit starts being reduced down to zero. Here are the income limits:
- Married filing jointly: $110,000
- Married filing separately: $55,000
- Single, head of household: $75,000
When you reach the Deductions & Credits section in TurboTax, we’ll not only determine if your children are eligible for the Child Tax Credit, we’ll figure out the amount they qualify for.