How can I determine my eligibility for the various Child Tax credits?

It’s essential to claim any credits you qualify for to maximize your tax return.

Determining your eligibility for tax credits involves meeting specific criteria for each credit. Here’s a breakdown of the eligibility requirements for the Child Tax Credit (CTC), Child and Dependent Care Credit, Earned Income Tax Credit (EITC), and Additional Child Tax Credit (ACTC):

Child Tax Credit (CTC)

  • Age: The child must be under 17 at the end of the tax year.
  • Relationship: The child must be your son, daughter, stepchild, foster child, sibling, stepsibling, or a descendant of any of these.
  • Support: The child must not provide more than half of their own support.
  • Residency: The child must have lived with you for more than half of the tax year.
  • Dependency: The child must be claimed as a dependent on your tax return.
  • Citizenship: The child must be a U.S. citizen, U.S. national, or U.S. resident alien.
  • Income Limits: Your income must be $200,000 or less ($400,000 or less if filing jointly) to qualify for the full credit.

Child and Dependent Care Credit

  • Work-Related Expenses: You must have paid for care to enable you (and your spouse, if filing jointly) to work or look for work.
  • Qualifying Person: The care must be for a child under 13, a spouse, or a dependent who is physically or mentally incapable of self-care.
  • Residency: You (and your spouse, if filing jointly) must have lived in the U.S. for more than half of the year.
  • Income Limits: The credit is based on a percentage of your work-related expenses, with higher percentages for lower incomes

Earned Income Tax Credit (EITC)

  • Earned Income: You must have earned income from employment or self-employment.
  • Investment Income: Your investment income must be below a certain limit.
  • Social Security Number: You, your spouse (if filing jointly), and any qualifying child must have a valid Social Security number.
  • Citizenship: You must be a U.S. citizen or resident alien all year.
  • Filing Status: You cannot file Form 2555 (Foreign Earned Income) and must meet certain rules if separated from your spouse.

Additional Child Tax Credit (ACTC)

  • Eligibility for CTC: You must be eligible for the Child Tax Credit but unable to claim the full amount due to low tax liability.
  • Earned Income: You must have earned income of more than $2,500.
  • Qualifying Child: The child must meet the same criteria as for the CTC.
  • Income Limits: The refundable portion of the credit is up to $1,700 per qualifying child.

To determine your eligibility, you can use the IRS’s Interactive Tax Assistant or consult with a tax professional.

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