Child Tax Credit Worksheet
We are going to work our way through the child tax credit worksheet. So many questions come in pertaining to the child tax credit. The first thing I will stress is the child must be under the age of 17 by the end of the year. If your qualifying child turned 17 on December 31, then you are not eligible to claim the tax credit for this dependent.
Child Tax Credit for Qualifying Children
What is a qualifying child? When it comes to claiming the child tax credit, qualifications for being claimed as a child can be tricky to understand.
Here are the qualifications for being claimed as a child for the child tax credit:
- The child is your son, daughter, stepchild, foster child, sister, brother, stepsister, stepbrother, or a descendant of any of them
- The child must be UNDER the age of 17 by the end of the year
- The child did not provide half of his or her own support for the year
- The child must be claimed as a dependent on your income tax return
- The child had to live with you for more than half of the year (exceptions apply)
- The child is a U.S. citizen, a U.S. national, or a U.S. resident alien (adopted note below)
Child Tax Credit Exceptions to the Rules
For the qualification of the child living with you there are exceptions. If your child has died and your home was the child’s home the entire time your child was alive, then the child qualifies to be claimed as your child for that year. This is a difficult concept to discuss, but for some parents this is a terrible reality and I’m sorry to even have to cover this topic.
There are also exceptions for children who have been kidnapped and for children of divorce. Each specific tax form will have all of the details for you concerning these topics. Temporary absences for special circumstances also are exceptions to the rule.
Perhaps your child was away for extended medical care, or even for juvenile detention. A lot of parents were away serving our country in the military and did not live with the child for more than half of the year. There are special exceptions for this too. Please look at tax form 1040, 1040A, and 1040NR.
Adopted children are always seen as your child as if he or she were your biological child. An adopted child is a qualifying child for the child tax credit.
The Child Tax Credit and the Child and Dependent Care Expenses
Don’t get the child tax credit confused with dependent care expenses because they are two separate topics when it comes to your income tax form. The earned income credit is also sometimes confused with the child tax credit. They are all unique in their own way and are three different tax topics all together.
Maximum Amount for Child Tax Credit
The maximum amount you can receive for the child tax credit is $1,000 per child. If you make more income than the allowed amounts for the child tax credit, then you will not qualify for the credit. For example: Married filing jointly - $110,000 is the limit for a married couple. If the married couple has an adjusted gross income of $110,000 for the year, then they cannot claim the child tax credit.
Child Tax Credit Worksheet Help
There are only 13 boxes on the child tax credit worksheet. I’ve already covered some of the most misunderstood aspects of the worksheet. If you need additional help understanding the child tax credit worksheet TurboTax Online can certainly help you sort things out.
If the child tax credit worksheet has left you feeling confused and frustrated, then see how TurboTax Online can help you claim the child tax credit.