How To Figure Out Child Tax Credit Eligibility

Need to know how to figure out your Child Tax Credit eligibility? If you are eligible for the Child Tax Credit, you may save a significant amount of money at tax time. It can reduce your taxable income for up to $1,000 for each qualifying child. Ask yourself these questions, based on guidelines from the Internal Revenue Service, to determine whether you are eligible to claim the Child Tax Credit for your child or children. These rules and publications are from the IRS tax rules of 2010.

1. Was your child age sixteen or younger at the end of 2009? Did the child live with you for more than half of 2009, or, if the child was born or died in 2009, did he live with you for his entire life? Absences for school, vacations, hospital stays or time spent in juvenile detention count as time that the child lived with you.
2. Is the child an acceptable relation? These include your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, grandchild, niece or nephew. This also includes legally adopted children.
3. Did you provide more than half of the funds toward supporting the child? Do you claim the child as a dependent on your federal tax return?
4. Is the child a U.S. citizen? If not, is the child a U.S. national or U.S. resident alien?
5. Is your household income less than $110,000 annually if you are married? Is it less than $55,000 if you are married filing separately, or less than $75,000 if you are single?
6. Is your federal income tax amount greater than zero? Do you plan to file your file federal income tax using Form 1040, Form 1040A, or Form 1040NR?

If you answer yes to all of these questions, you are eligible to claim the Child Tax Credit. If you do not qualify for the Child Tax Credit, you may be eligible for the Additional Child Tax Credit, a refundable tax credit for families who don't owe any taxes, or owe less than their CTC amount. You may want to consult with a tax professional for additional information.