What is the Child Tax Credit?
If you have kids, you’re probably wondering if they qualify for the Child Tax Credit. It make sense: Each qualifying child you claim on your tax return can put up to $1,000 in your pocket.
This credit, not to be confused with the 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 2016, your child must fill all of these requirements:
- Be born on or after January 1, 2000
- 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.