How to Claim a Child Tax Credit
Make sure you qualify to use this form., Enter the number of qualifying children you have on the first line., Multiply the number of qualifying children you have by $1,000 and enter that number in box one., Enter your adjusted gross income in box...
Step-by-Step Guide
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Step 1: Make sure you qualify to use this form.
If your child has an Individual Tax Identification Number instead of a Social Security number, you must use Schedule
8812.
If you’re claiming certain other credits such as the adoption credit or mortgage interest credit, you need to use Publication
972.
All other taxpayers use the worksheet accompanying Form 1040 or Form 1040A. -
Step 2: Enter the number of qualifying children you have on the first line.
Your child must meet age, relationship, support, dependent status, citizenship, and length of residency tests to qualify.
Children qualify if they are under the age of 17 during the tax year.
In other words, your child must be 16 at the end of the tax year.
The child must be your own child, a step-child or a foster child.
You also may claim your siblings or step-siblings, or their children, provided they meet all the other tests.
You must provide more than half of the child’s financial support during the tax year for him to qualify.
For the child to qualify, you have to claim him as a dependent on your tax return.
This means he must meet the test for dependency as well: your child, or a sibling, niece or nephew who has lived with you for more than half the year and provided no more than half of his own financial support.
Qualifying children either are U.S. citizens, U.S. nationals, or U.S. resident aliens.
The IRS considers anyone born in American Samoa or the Northern Mariana Islands to be a U.S. national., For example, if you have three children of your own who are U.S. citizens under the age of 17 and have lived with you over half the year as your dependents, you’d enter $3,000 in the box., This is the amount on line 38 of your 1040or line 22 of your 1040A.For example, if you are married filing jointly and you and your spouse have an adjusted gross income of $100,000, you would enter that amount in the second box on the worksheet. , These amounts are based on the credit’s income threshold, and may change each year.For the 2014 tax year, the amounts were $110,000 for married taxpayers filing jointly, $55,000 for married taxpayers filing separately, and $75,000 for all others.
To continue the original example, if you were married filing jointly, you would enter $110,000 in the third box. , This calculation determines if your adjusted gross income is above or below the income threshold for the child tax credit.
If the threshold amount in the third box is greater than the amount you entered for your AGI in the second box, leave the fourth box blank and enter a zero in the fifth box.
If your AGI in the second box is greater than the threshold amount in the third box, subtract the threshold amount from your AGI.
If the resulting number is not a multiple of 1,000, increase it until it is and enter that number in the fourth box.
For example, if you subtracted and got $637, you would enter $1,000 in the fourth box.
Multiply the amount in the fourth box by .05 and enter the result in the fifth box.
In the original example, since 100,000 is less than $110,000, you would skip the fourth box and enter a zero in the fifth box. , This step will tell you whether you are potentially eligible for the child tax credit.
If so, you’ll need to continue to Part 2 of the worksheet.
If the amount in the fifth box is more than the amount you entered on the first line of the worksheet, you are not eligible for the child tax credit or the additional child tax credit.
If the amount in the fifth box is less than the amount you entered on the first line of the worksheet, you should subtract that amount from the amount in the first line and enter that number in the sixth box.In the example, you entered $3,000 in the first box and zero in the fifth box.
Since $3,000 is greater than zero, you are potentially eligible for the child tax credit.
You would subtract zero from $3,000 and enter $3,000 in the sixth box. , The seventh box is your tax liability, while the eighth box is a total of all the credits you’ve already claimed.If the amounts in the seventh and eighth boxes are the same, you cannot take the child tax credit.
However, you may be eligible for the additional child tax credit.
You should complete Schedule
8812.
If the amount in the eighth box is less than the amount in the seventh box, subtract your lesser amount of credits from your greater amount of tax liability and enter that amount in the ninth box. , You will enter the lesser of these two amounts on your 1040 as the amount of child tax credit you’ll claim. -
Step 3: Multiply the number of qualifying children you have by $1
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Step 4: 000 and enter that number in box one.
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Step 5: Enter your adjusted gross income in box two.
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Step 6: In the third box
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Step 7: enter the amount provided that is appropriate to your marital and filing status.
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Step 8: Complete the calculations for Part 1 of the worksheet.
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Step 9: Analyze the amount in the fifth box.
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Step 10: Enter the requested amounts from your 1040 or 1040A in the seventh and eighth boxes of Part 2 of the worksheet.
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Step 11: Compare the amount in the sixth box with the amount in the ninth box.
Detailed Guide
If your child has an Individual Tax Identification Number instead of a Social Security number, you must use Schedule
8812.
If you’re claiming certain other credits such as the adoption credit or mortgage interest credit, you need to use Publication
972.
All other taxpayers use the worksheet accompanying Form 1040 or Form 1040A.
Your child must meet age, relationship, support, dependent status, citizenship, and length of residency tests to qualify.
Children qualify if they are under the age of 17 during the tax year.
In other words, your child must be 16 at the end of the tax year.
The child must be your own child, a step-child or a foster child.
You also may claim your siblings or step-siblings, or their children, provided they meet all the other tests.
You must provide more than half of the child’s financial support during the tax year for him to qualify.
For the child to qualify, you have to claim him as a dependent on your tax return.
This means he must meet the test for dependency as well: your child, or a sibling, niece or nephew who has lived with you for more than half the year and provided no more than half of his own financial support.
Qualifying children either are U.S. citizens, U.S. nationals, or U.S. resident aliens.
The IRS considers anyone born in American Samoa or the Northern Mariana Islands to be a U.S. national., For example, if you have three children of your own who are U.S. citizens under the age of 17 and have lived with you over half the year as your dependents, you’d enter $3,000 in the box., This is the amount on line 38 of your 1040or line 22 of your 1040A.For example, if you are married filing jointly and you and your spouse have an adjusted gross income of $100,000, you would enter that amount in the second box on the worksheet. , These amounts are based on the credit’s income threshold, and may change each year.For the 2014 tax year, the amounts were $110,000 for married taxpayers filing jointly, $55,000 for married taxpayers filing separately, and $75,000 for all others.
To continue the original example, if you were married filing jointly, you would enter $110,000 in the third box. , This calculation determines if your adjusted gross income is above or below the income threshold for the child tax credit.
If the threshold amount in the third box is greater than the amount you entered for your AGI in the second box, leave the fourth box blank and enter a zero in the fifth box.
If your AGI in the second box is greater than the threshold amount in the third box, subtract the threshold amount from your AGI.
If the resulting number is not a multiple of 1,000, increase it until it is and enter that number in the fourth box.
For example, if you subtracted and got $637, you would enter $1,000 in the fourth box.
Multiply the amount in the fourth box by .05 and enter the result in the fifth box.
In the original example, since 100,000 is less than $110,000, you would skip the fourth box and enter a zero in the fifth box. , This step will tell you whether you are potentially eligible for the child tax credit.
If so, you’ll need to continue to Part 2 of the worksheet.
If the amount in the fifth box is more than the amount you entered on the first line of the worksheet, you are not eligible for the child tax credit or the additional child tax credit.
If the amount in the fifth box is less than the amount you entered on the first line of the worksheet, you should subtract that amount from the amount in the first line and enter that number in the sixth box.In the example, you entered $3,000 in the first box and zero in the fifth box.
Since $3,000 is greater than zero, you are potentially eligible for the child tax credit.
You would subtract zero from $3,000 and enter $3,000 in the sixth box. , The seventh box is your tax liability, while the eighth box is a total of all the credits you’ve already claimed.If the amounts in the seventh and eighth boxes are the same, you cannot take the child tax credit.
However, you may be eligible for the additional child tax credit.
You should complete Schedule
8812.
If the amount in the eighth box is less than the amount in the seventh box, subtract your lesser amount of credits from your greater amount of tax liability and enter that amount in the ninth box. , You will enter the lesser of these two amounts on your 1040 as the amount of child tax credit you’ll claim.
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