Child Tax Credit and Additional Child Tax Credit
The Child Tax Credit is intended to offset the extra cost it takes to raise children
and can be worth as much as $1,000 per child. The Child Tax Credit begins to phase
out $75,000 for single filers ($110,000 married filing jointly). President Obama’s
economic stimulus plan expands the Child Tax Credit to cover more low-income families.
The Additional Child Tax Credit (ACTC) is a refund that families may receive if
their Child Tax Credit is greater than the amount of taxes they owe. The stimulus
plan increases the ACTC for some families and makes it available to more families.
The list provided here is intended for a high level overview and understanding.
Everything stated here might have exceptions. During the tax interview on eFile
you will be prompted to enter the necessary information.
Please reference
Publication 972, Child Tax Credit, for more detail on what you can and cannot
deduct.
The following tests must be met to claim someone as a qualifying child* for the
child tax credit.
Relationship Test:
The child must be your son, daughter, stepson, stepdaughter, legally adopted child,
or a child lawfully placed with you for legal adoption, brother, sister, stepbrother,
stepsister, foster child placed with you by an authorized placement agency or by
a court order, or a descendant of any such person.
Residency Test:
You and the child must have the same principle place of abode for more than half
of the year (except for temporary absences).
Age Test:
The child must be under the age of 17 by December 31 of the calendar year in which
your tax year begins.
Support Test:
The child must not have provided more than half of his or her own support for the
calendar year in which your tax year begins.
Citizen, Resident, or National Test:
The child must be a United States citizen, United States national, or a resident
of the United States.
* Special rules may apply if you have income from outside the U.S
Child Tax Credit and deduction details are listed here