It’s tough running a business, working a job, starting a family, having children and so on and so on. That’s why it’s important to keep yourself informed about any form of financial help that may apply to you.
A perfect example is a child tax credit. A child tax credit has the potential to reduce your tax liability, sometimes very significantly. “Tax liability” is a fantastically serious term that simply means “the amount of taxes owed” by a person. In general, the credit has the potential of reducing federal income tax owed by up to a thousand dollars for each child that’s eligible for the claim.
Here are the requirements:
At the end of the year 2009 or 2010, the child must be 17 years old or younger. The child has to be either your child, stepchild, foster child, brother, sister, stepbrother, stepsister, or a descendent of any of the just-mentioned people. Adopted children also qualify.
The child in question must not have provided more than half of his or her support and must be claimed as a dependent on your federal tax return.
However, the credit is available only to those who fall within the accepted adjusted gross income. Phase-outs begin at different points depending on your tax filing status. The phase out begins at $110,000 for married couples filing jointly. For married taxpayers filing single returns, it begins at $55,000, and for all other taxpayers the phase-out begins at $75,000.
There is more information that can prove valuable, including information on the additional child tax credit. To learn more, you can check out an online tax service like TurboTax Online. They offer an impressive library of tax information as well as additional live support that’s available in regards to your particular situation. And when it comes time to file, they’ll actually walk you through the process step by step and insure that nothing is missed when it comes to getting the most out of your child tax credit.
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