Do I Qualify for the Child Tax Credit?
The Child Tax Credit is a credit intended to help offset the tremendous costs of raising a child or children. If you qualify, the Child Tax Credit can be worth up to $1,000 per child. In most cases, a tax credit is even better than a tax deduction. A credit will directly reduce your tax bill dollar-for-dollar, but a deduction will only reduce your taxable income.
If your taxes owed are reduced to $0 and you still have some Child Tax Credit left over, you may be able to receive some or all of it as a tax refund. This is called the Additional Child Tax Credit. The Additional Child Tax Credit is important to low-income families and helped lift an estimated 1.6 million Americans out of poverty in 2010.
You can claim the Child Tax Credit if your income is not too high (see the income limitations for the Child Tax Credit), and if you have a child or children who qualify you. Use the tax educator tool below to find out if your child qualifies you to claim the credit.
The "KIDucator" or Child Tax Credit Educator Tool
This tax educator tool will help you find out if your child or dependent qualifies you to claim the Child Tax Credit on your tax return. Just answer the "Yes" and "No" questions until the KIDucator provides you with the answer you seek.
See all of the requirements for the Child Tax Credit.
How Do I Claim the Child Tax Credit on My Tax Return?
It is a cinch to claim the Child Tax Credit (and the Additional Child Tax Credit) when you prepare your tax return on efile.com! The online tax software will automatically determine if you qualify for the Child Tax Credit based on the information you enter. If you do qualify to claim the credit, the software will then calculate the amount of your credit and will fill out the correct forms for you to get your maximum credit.
Once you have determined if you can claim the Child Tax Credit, use the FREE Tax Calculator, or "TaxStimator", to calculate and estimate your tax refund (or taxes owed) for the current tax year. Or you can just start a free efile.com account and start preparing your tax return!
Need help? Ask FREE Tax Questions!