Table of Contents
The child tax credit is a credit that may reduce your tax by as much as $1,000 for each of your qualifying children.
The additional child tax credit is a credit you may be able to take if you are not able to claim the full amount of the child tax credit.
This chapter explains the following.
-
Who is a qualifying child.
-
The amount of the credit.
-
How to claim the credit.
-
Why you should check your tax withholding.
Publication
-
972 Child Tax Credit
Form (and Instructions)
-
8812 Additional Child Tax Credit
-
W-4 Employee's Withholding Allowance Certificate
A qualifying child for purposes of the child tax credit is a child who:
-
Is your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, or a descendant of any of them (for example, your grandchild, niece, or nephew),
-
Was under age 17 at the end of 2011,
-
Did not provide over half of his or her own support for 2011,
-
Lived with you for more than half of 2011 (see Exceptions to time lived with you later),
-
Is claimed as a dependent on your return,
-
Does not file a joint return for the year (or files it only as a claim for refund), and
-
Was a U.S. citizen, a U.S. national, or a resident of the United States. If the child was adopted, see Adopted child below.
For each qualifying child you must check the box on Form 1040 or Form 1040A, line 6c, column (4).
Example.
Your son turned 17 on December 30, 2011. He is a citizen of the United States and you claimed him as a dependent on your return. He is not a qualifying child for the child tax credit because he was not under age 17 at the end of 2011.
The maximum amount you can claim for the credit is $1,000 for each qualifying child.
You must reduce your child tax credit if either (1) or (2) applies.
-
The amount on line 46, Form 1040, or line 28, Form 1040A, is less than the credit. If this amount is zero, you cannot take this credit because there is no tax to reduce. But you may be able to take the additional child tax credit. See Additional Child Tax Credit , later.
-
Your modified adjusted gross income (AGI) is above the amount shown below for your filing status.
-
Married filing jointly - $110,000.
-
Single, head of household, or qualifying widow(er) - $75,000.
-
Married filing separately - $55,000.
-
-
Any amount excluded from income because of the exclusion of income from
Puerto Rico. On the dotted line next to Form 1040, line 38, enter the amount excluded and identify it as “EPRI.” Also attach a copy of any Form(s) 499R-2/W-2PR to your return. -
Any amount on line 45 or line 50 of Form 2555, Foreign Earned Income.
-
Any amount on line 18 of Form 2555-EZ, Foreign Earned Income Exclusion.
-
Any amount on line 15 of Form 4563, Exclusion of Income for Bona Fide Residents of American Samoa.
To claim the child tax credit, you must file Form 1040 or Form 1040A. You cannot claim the child tax credit on Form 1040EZ. You must provide the name and identification number (usually a social security number) on your tax return for each qualifying child.
If you are filing Form 1040, answer the Questions in your form instructions for line 51, Form 1040, to find out which child tax credit worksheet you can use to figure the credit.
If you answer “Yes” to question 1 or 2 in your Form 1040 instructions, you must complete the child tax credit worksheet in Publication 972. Otherwise, you can use the Child Tax Credit Worksheet in your Form 1040 or Form 1040A instructions. (See Example , later.)
This credit is for certain individuals who get less than the full amount of the child tax credit. The additional child tax credit may give you a refund even if you do not owe any tax.
-
Make sure you figured the amount, if any, of your child tax credit. See Claiming the Credit , earlier.
-
If you answered “Yes” on line 9 or line 10 of the Child Tax Credit Worksheet in the Form 1040 or Form 1040A instructions, or line 13 of the Child Tax Credit Worksheet in Publication 972, use Form 8812 to see if you can take the additional child tax credit.
-
If you have an additional child tax credit on line 13 of Form 8812, carry it to Form 1040, line 65, or Form 1040A, line 39.
The child tax credit decreases your tax. You can check your tax withholding by using Publication 505, Tax Withholding and Estimated Tax.
If you are having too much tax withheld, and you prefer to have the money during the year, you may be able to decrease your withholding. You do this by completing a new Form W-4 and giving it to your employer.
Amy Brown files as head of household and has two dependent children under age 17. The children are qualifying children for purposes of the child tax credit. Amy's only income is her salary of $30,450. Amy chooses to itemize her deductions and files Form 1040. Her AGI, shown on line 38 of her Form 1040, is $30,450. This is her taxable earned income.
Amy does not file Form 2555, 2555-EZ, or 4563. She does not exclude income from Puerto Rico. Her modified AGI is $30,450.
Amy's tax, shown on line 46 of her Form 1040, is $1,108. She claims a $225 credit for child and dependent care expenses on line 48 and a $2,082 earned income credit on line 64a. She has no other credits.
After answering the Questions in the Form 1040 instructions for line 51, she completes the child tax credit worksheet to figure her child tax credit of $883. Amy's completed questions and child tax credit worksheet are shown later.
Amy reads the TIP in the worksheet and finds that she may be able to take the additional child tax credit. See Additional Child Tax Credit and Amy's completed Form 8812, later.
){kind=link}
Filled-in child tax credit worksheet for Amy Brown
Filled-in child tax credit worksheet for Amy Brown (page 2).
Filled-in Form 8812