|
Child Tax Credit
For those that have dependent children The Child Tax Credit may reduce federal income taxes owed by up to $1,000 for each qualifying child under the age of 17.
A qualifying child for this credit is someone who meets the following criteria:
· Age - Was under age 17 at the end of 2007
· Relationship - Is your son, daughter, adopted child, stepchild or eligible foster child, brother, sister, stepbrother, stepsister, or a descendant of any of these individuals
· Citizenship - Is a U.S. citizen, U.S. national or resident of the U.S.
· Support - Did not provide over half of his or her own support,
Lived with you - Must have lived with you for more than half of 2007 (note that some exceptions to this criteria exist)
The credit phases out for those defined by your politicians as wealthy Americans if your modified adjusted gross income is above a certain amounts. The amount at which this phase-out begins varies depending on your filing status:
· Married Filing Jointly $110,000
· Married Filing Separately $55,000
All others $75,000
The Child Tax Credit is generally limited to the amount of personal income tax or alternative minimum taxes owed.
Should the amount of your Child Tax Credit be greater than the amount of income tax you owe, you may be able to claim some or all of the difference as an Additional Child Tax Credit. The Additional Child Tax Credit may result in a refund even if you do not owe any tax. For 2007, the total amount of the Child Tax Credit and any Additional Child Tax Credit cannot exceed the maximum of $1,000 for each qualifying child.
|
