Did you know that you could claim a tax credit of up to $1,000 per qualifying child on your taxes? Depending on the size of your family, that can add up to big savings on your taxes, so make sure you don’t skip over this credit when you’re preparing your 2016 return.
The Child Tax Credit applies to your minor children, foster children, siblings, step-siblings, half siblings, or descendant of any of them (grandchildren, etc.) who lived with you for more than half the year. For children born in 2016, that rule is modified to half the time the child was alive. In short, if your child was born on 12/31/16, you should still be able to claim the Child Tax Credit for 2016!
There are several other factors that must be met for your child to qualify for the Child Tax Credit:
- Must be age 16 or under at the end of 2016.
- Must be claimed as a dependent on your tax return.
- Must be a U.S. citizen or resident alien.
- Must not provide more than half of his/her own support.
- Must not file a joint return for 2016.
There are some nuances to these requirements and there is a limit on how high your AGI can be for taking the maximum credit, so if you have any questions or concerns about the Child Tax Credit, don’t hesitate to ask. The Taxation Solutions, Inc. team has more than 40 years of experience solving all types of tax problems, and we’d love to put our knowledge to work for you. Call now to learn more!