Child Tax Credit Law

Child Tax Credit is a great help for families who have unavoidable burdens and insoluble problems. If you qualify for having child tax credit, you can get about $1,000 for a child. For qualifying for child tax credit, five criteria have to be met by applicants.

The child who is liable to have tax credit should be your own siblings, stepchild or adopted child. It is given to brothers, sisters, stepbrothers and stepsisters as well as to descendants of them. His or her age should be under 17 years when the tax claim is filed. The child is also unable to cover his /her expenditure for at least half of his /her growth. The child should also be with the applicants more than half of the year. And he/she should be a citizen or resident of the country.

This criterion has been changed for 2009 in the USA. In accordance with the new rule, the child/children so forwarded for child tax credit should be younger than the applicant/s. In addition, the eligibility criteria for tax credit have also been increased under the USA Recovery and Reinvestment Act.

Irrespective of your filing status, the child tax credit receivable. Nevertheless, when modified gross income of a married couple jointly is over $110,000, or if it is $75,000 of a person, householder or widower, $50 per $1000 above the limit is deducted from the child tax credit. A married couple that earns over $55,000 and claims for child tax credit separately, $50 is deducted from the child tax credit for every $1,000 that exceeds the aforementioned points.

For instance, when you file a joint return and your MAGI are $115,000, you will be deducted $250 from your child tax credit for the excess $5,000 over the limitation. With that rate, you would get $750 for one child. Simple arithmetic gives you the added sum as $2750 for three qualified children.

However, the child tax credit is not a reason for your having zero tax. On the other hand, if you are unable to have child tax credit because your tax has limited it, you are qualified for yet another child tax credit. Even under zero tax liability, you are liable to have child tax credit if you have income more than $8,500 for the year 2008. The other instance to have child tax credit under this condition is to have three or more children and your payment for Medicare and social security is over your income. You have to fill form 8812 to claim the child tax credit.