Introduction
T child tax credit claim is a must for individuals who have a dependent child or children. Those that classify as dependents are your son, daughter, adopted child, foster child, step child, brother, sister, a grandchild, niece or nephew, or a child from any of your relatives.
Step 1
The maxium amount to claim for child tax credit is $1,000 for each eligible child. Before claiming a child, there are many factors to consider. 1. The Child would be required to have a Social Security Number (SSN) or An Individual Tax Identification Number (ITIN) , 2. The child has to be a resident alien or citizen of the country that you are filing your tax form. 3. The child has to be under seventeen years old. 4. The child has to live with the taxpayer for more than half of the year to qualify. 5. The child has to be younger than the person who is claiming the tax credit. Claiming the child tax credit is quite easy, and you would need the longer 1040 Form or the shorter 1040A Form.
Step 2
You can either fill it out on your own online or let a tax expert fill it out for you. Some will fill it out for free, and others will charge a fee. The child tax credit reduces when a person's income reaches a certain level, for example $55,000 for Married couples filing separately, $75,000 for the head of household, a single person, widow or widower, and $110,000 for married people who are filing jointly. The child tax credit is refundable to 15 percent of your earned income.
Step 3
There is no limit to the amount of children that one can claim as dependents. So the more kids you claim the bigger your child tax credit claim refund will be. In regards to the phase out range, the child tax credit claim is reduced by $50 for every income of $1,000 or above. The head of household is usually the one eligible to claim the child tax credit.
Step 4
If both mother and father file for the child, then the one whom the child is living with will be able to receive the child tax credit. The $1,000 child tax credit will be decreased in 2013 to $500 per child unless there is further legislation. Most people can calculate their child tax credit by using the worksheet found in the Instructions on the 1040 Form.
Step 5
Different countries have different tax credit laws and refunds may vary. One can also claim the additional child tax credit for each dependent. Members of the Military can include combat zone pay when filing their taxes as part of their earned income for the sole purpose of calculating the refundable child tax credit. So far there are nine criterias for a child. If a child was claimed by another person, then that person must have an adjusted income that is higher than the adjusted gross income of the other parent.
Tips
One can find more information on the tax law regarding the child tax credit claim on the Internal Revenue Site, Code section 24. All information regarding the child tax credit can be found on the IRS website.
