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 Schedule 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 2013
    • 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 2013 
    • Is claimed as your dependent for 2013
    • 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.