IRS Child Tax Credit

The Child Tax Credit (CTC) for each qualifying child is up to $1,000 depending on the taxpayer’s adjusted gross income.

The additional child tax credit (ACTC) on Form 8812 is refundable to the extent of 15% of the taxpayer’s earned income in excess of $3,000. A refundable ACTC may be available to those who qualify and have not used up the available CTC amount.  A military taxpayer’s nontaxable combat pay may be added to the earned income which may result in a larger credit. 

What constitutes a qualifying child? 

• The child must be under age 17 at the end of 2011
• The child must be a son, daughter, adopted child, stepchild, eligible foster child, brother, sister, stepbrother, stepsister,  or descendent of any of those  
• US citizen or resident alien
• Lived with you over half the year in 2011 
• Is claimed as your dependent for 2011
• Did not provide over half their own support

What are the adjusted gross income limits of the taxpayers claiming the Child Tax Credit? 

• $110,000 if you’re married filing jointly
• $55,000 for those married, filing separately
• $75,000 all other filing options

To be sure you qualify to take the IRS Child Tax Credit, click on IRS Publication 972, Child Tax Credit, or visit your nearest Liberty Tax office.