If you have a child, you may be eligible for the child tax credit. Do you know that this credit can reduce your federal income taxes by up to $3,600 per child? If you’re considering claiming this credit, there are several things to keep in mind.
What is the child tax credit?
The child tax credit is a federal income tax credit that helps parents offset the cost of raising children. The credit is available for each qualifying child under age 17.
Who qualifies for the child tax credit?
To qualify for the child tax credit, your child must meet certain requirements. Firstly, your child must be a U.S. citizen, U.S. national or resident alien. Secondly, your child must have been under age 17 at the end of the tax year for which you’re claiming the credit. It’s also important that the child be your son, daughter, stepchild, foster child, brother, sister, half-brother or half-sister. On top of that, you must claim the child as a dependent on your tax return.
How much is the child tax credit?
If the child is between the ages of 6 and 17, they’re eligible for a credit of $3,000. If they’re under the age of 6, they’re eligible for a credit of $3,600. All the tax credits that you’re eligible for will be applied to your taxes, and you’ll receive the rest as a refund.
When can you claim the child tax credit?
You can claim the child tax credit for each qualifying child on your federal income tax return. For most taxpayers, this is done when they file their return in April of the following year per tax law. However, you may be able to claim the credit on your return for the previous year if you qualify for the Additional Child Tax Credit.
To claim the child tax credit, you’ll need to complete IRS Form 8812, Child Tax Credit. This form asks for information about yourself, your spouse if you have one and your qualifying children. You must include this form with your tax return.